Shiba Inu (SHIB), the second-largest memecoin by market capitalisation, has recently experienced a significant price decline, breaking the ascending trendline that had supported its price action since the 5 August crash. This breach suggests a potential further drop towards its Q1 2024 low of $0.00000837, raising concerns among cryptocurrency investors and traders.
Technical indicators reinforce this bearish outlook. The Moving Average Convergence Divergence (MACD) line is at -0.00000110, with the signal line at -0.00000102 and the histogram at -0.00000008, all pointing to sustained downward momentum. If the MACD line continues to decline, it could confirm ongoing bearish pressure and signal further losses for Shiba Inu in the short term.
Concurrently, Shiba Inu’s on-chain activity has diminished markedly. Active addresses per period have decreased from over 2,000 in mid-February to a historic low of 501, indicating waning user interest and reduced transaction activity across the SHIB network. Additionally, the number of new transactions has plummeted from over 4.6 million to just 44,913, reflecting a significant decline in investor demand and liquidity. This decrease in network engagement is a critical factor influencing Shiba Inu’s price trajectory.
This decline in network utilisation could expose SHIB to increased sell-offs, as diminished liquidity often leads to heightened price volatility. Without renewed network usage or bullish sentiment, SHIB’s price may continue to fall in the short term, increasing the risk of further declines in the cryptocurrency market.
As of 11 March 2025, SHIB is trading at approximately $0.00001171, reflecting a 0.05105% decrease from the previous close. The intraday high was $0.00001287, with a low of $0.00001098, highlighting the ongoing price fluctuations and market uncertainty surrounding Shiba Inu.
In summary, Shiba Inu’s recent price movements, coupled with declining on-chain activity, suggest potential further declines in the short term. Cryptocurrency investors should monitor these developments closely, considering the heightened risks associated with reduced network engagement and liquidity. As market conditions evolve, the future of Shiba Inu remains uncertain, with both technical and on-chain indicators pointing to continued bearish pressure.
