• Shiba Inu yielded impressive gains over the past week, however analysts have identified bearish signals in the meme coin’s price chart. 
  • Coinbase’s price page indicates that Shiba Inu has a higher average hold time than Bitcoin or Ethereum, this is indicative of declining volatility in SHIB. 
  • Analysts predict a 21% decline in Shiba Inu price if the meme coin fails to sustain above the $0.0000118 level. 

Shiba Inu’s performance over the last thirty days has overwhelmed SHIB holders. However analysts argue that SHIB is likely to suffer a decline in the short-term as volatility drops. 

Also read: SEC v. Ripple end game: Ripple aims for ultimate win against the regulator

Shiba Inu could suffer a slump in its market condition

Shiba Inu yielded nearly 5% gains over the last two weeks. Analysts believe despite consistent gains in the Shiba Inu ecosystem, holders need to be careful now. Shiba Inu holders expected a massive rally in the meme coin as governance token BONE witnessed a peak in demand. However, a market-wide slump resulted in a decline in Shiba Inu price. 

BONE’s current supply was capped above 230 million, and minting was officially halted. Despite the widespread adoption of BONE and its rising utility Shiba Inu price has failed to make a comeback in its price. 

The upcoming layer-2 solution, Shibarium, requires 20 million BONE for the operation of the protocol. Delegators will be rewarded with BONE for their efforts of playing designated roles within the ecosystem and the blockchain.

Shiba Inu’s upcoming reward token TREAT will enter the ecosystem soon enough as part of the SHIB ecosystem development. Shytoshi Kusama, the leader of the Shiba Inu project commented on TREAT and argued that the token is being developed quietly as the team did not want to rush another cryptocurrency in the ecosystem before its use case. 

Analysts have identified bearish signals in the Shiba Inu price chart. The next resistance for Shiba Inu is at the $0.00001323 level while the meme coin currently trades at $0.00001279. If Shiba Inu fails to sustain above the $0.00001279 level, 

A recent report by Coinbase revealed that Shiba Inu is held in wallets longer than Bitcoin and Ethereum. This could mean that the lack of volatility in the meme coin results in a longer time period of holding or traders are bullish and want to hold SHIB for a long duration. Since analysts have a bearish outlook on SHIB, holders could slow down on their acquisition of the meme coin and wait for an increase in volatility. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Assessing the possibility of Bitcoin price crash to $20,000 after US NFP rises to 517,000

Assessing the possibility of Bitcoin price crash to $20,000 after US NFP rises to 517,000

The United States unemployment rate for January came in at 3.4% which is lower than forecast of 3.6%. The Nonfarm Payrolls (NFP) data shows that 517,000 jobs were added in January, which is much higher than the expected 185,000.

More Bitcoin News

Cardano price could get help from US job report to clean up winter losses, 31% gains on the horizon for ADA

Cardano price could get help from US job report to clean up winter losses, 31% gains on the horizon for ADA

Cardano (ADA) price has succeeded in breaking above key levels near $0.39 as the pivotal historical level at $0.388 and the 200-day Simple Moving Average (SMA) all got broken to the upside with the Federal Reserve meeting on Wednesday.

More Cardano News

Ethereum Classic Price Prediction: Is ETC safe in this bullish channel?

Ethereum Classic Price Prediction: Is ETC safe in this bullish channel?

Ethereum Classic (ETC) is set to book a very outright bullish intraday session just hours before the US session kicks in. As the dust is settling for global markets after all major central banks had their say on Wednesday.

More Ethereum Classic News

Bitcoin Weekly Forecast: Nonfarm Payrolls on the radar after Powell’s speech propels BTC higher

Bitcoin Weekly Forecast: Nonfarm Payrolls on the radar after Powell’s speech propels BTC higher

Bitcoin (BTC) price is at an inflection point as it continues to rally amid multiple sell signals on lower time frames. The Nonfarm Payrolls (NFP) report, including the unemployment rate and average hourly earnings

More Bitcoin News

Bitcoin: Nonfarm Payrolls on the radar after Powell’s speech propels BTC higher

Bitcoin: Nonfarm Payrolls on the radar after Powell’s speech propels BTC higher

Bitcoin (BTC) price is at an inflection point as it continues to rally amid multiple sell signals on lower time frames. The Nonfarm Payrolls (NFP) report, including the unemployment rate and average hourly earnings, is set to be announced on February 3 at 1330 GMT.

Read full analysis

BTC

ETH

XRP