Shiba Inu Price’s 10-Week Long Downtrend Continues As Losses Surge

From beincrypto by Aaryamann Shrivastava

Shiba Inu, once a leading meme coin, is currently facing a prolonged downtrend. The price has continued to struggle with recovery, and the lack of upward momentum is causing concern among both current holders and potential investors.

With Shiba Inu failing to attract new investments, it has experienced a significant loss in confidence. This downtrend, combined with an overall lack of growth, is causing both existing holders and newcomers to lose interest in the token.

Shiba Inu Is Losing Investors

The adoption rate for Shiba Inu  has recently dropped to a four-year low. Over the past two months,  SHIB  has failed to deliver significant growth, making it less enticing for new investors. This decline in adoption reflects a waning interest in the token, as potential investors are hesitant to commit to an asset showing minimal movement.

The lack of strong incentives for new participants has contributed to the stagnation in SHIB’s price action, further increasing the altcoin’s struggles.

This diminishing adoption rate is also concerning because it signals that Shiba Inu is losing its traction within the broader cryptocurrency market. As a result, the altcoin is facing increasing difficulty in attracting fresh capital, making it more likely that it will continue to face downward price pressure.

  Shiba Inu Adoption Rate. Source: IntoTheBlock

The MVRV Long/Short Difference indicator is currently at -5.5%, signaling that both long-term holders (LTHs) and short-term holders (STHs) are at a standstill in terms of profitability. Neither group is currently experiencing significant gains, which is a troubling  sign for Shiba Inu . The lack of profits for both LTHs and STHs signals that investor sentiment may remain muted, further hindering the altcoin’s price recovery.

The muted investor sentiment has led to increased uncertainty around Shiba Inu’s price trajectory. With both holders and investors experiencing stagnation, the potential for an immediate recovery remains uncertain.

  Shiba Inu Long/Short Difference. Source: Santiment

SHIB Price Prediction: Breakout Likely

Shiba Inu’s price stands  at $0.00001537, currently stuck below the downtrend line after failing to breach the resistance at $0.00001676. This resistance level has proven challenging, and as a result, SHIB has struggled to gain upward momentum. The two-and-a-half-month-long downtrend suggests that further declines may be likely unless there is a significant shift in market conditions.

If the current drawdown continues, SHIB could test the support level at $0.00001462. This level will be crucial for the token’s immediate future, as any further declines could push the price lower, amplifying losses for investors. The continued weakness in adoption and sentiment makes it possible for SHIB to breach this support level.

  Shiba Inu Price Analysis. Source: TradingView

On the other hand, if  SHIB manages  to breach and flip $0.00001676 into support, it could initiate a rally toward $0.00001961 and potentially even push past the $0.00002000 mark. This would invalidate the current bearish outlook, signaling a potential reversal and attracting investor interest once again. However, the chances of this recovery will depend largely on a shift in both market conditions and investor sentiment.