Shiba Inu (SHIB) Price Under Bearish Pressure Amid Slower Trading Activity

Key Takeaways

• According to on-chain data, • SHIB price trades around $0.000021 amid rising dormant tokens.
• The Ichimoku Cloud positions above SHIB price, indicating stiff resistance on the 4-hour timeframe
• The daily chart also reinforces this bearish bias, with analysis showing a further decline is possible.

Like many other cryptocurrencies, the Donald Trump inauguration on Dec. 20 failed to breathe life into memecoins, including Shiba Inu (SHIB).

As a result, SHIB’s price has been hovering around $0.000021. Beyond the broader market impact, the token has remained around this region because of dwindling interest.

In this analysis, CCN reveals how the fading activity around SHIB could affect its price in the future.

SHIB Remains Stagnant, Hindering Upswing

One reason the SHIB price failed to perform impressively is the position of the Mean Dollar Invested Age (MDIA) position.

As the name implies, the MDIA is the average age of all tokens on a blockchain weighted by the purchase price. This metric can tell if the price will likely increase or decrease.

The MDIA can hint at the potential price performance because it tells whether tokens have remained dormant or are moving into circulation.

When the MDIA line falls, long-term holders move their assets into circulation. In most cases, this increases the volume traded and is a bullish sign.

In Shiba Inu’s case, the MDIA line has significantly increased. This indicates that tokens accumulated and held by long-term holders have remained stagnant in wallets.

If sustained, this rising number of dormant tokens and low trading activity could hinder SHIB’s price from trading higher.

Another indicator supporting SHIB’s price decrease is the Ichimoku Cloud—this technical indicator spots support and resistance while measuring price direction and momentum.

Typically, when the cloud is below the price, it indicates support. In this case, the cryptocurrency’s value might increase.

On the other hand, if the cloud is above the price, it represents resistance, which is the situation with SHIB. With the current position on the 4-hour chart, the memecoin’s value might fail to jump toward $0.000025 as it did on Jan. 18.

SHIB Price Forecast: The Decrease Continues

Analysis of the daily chart also suggests a bearish outlook. According to the image below, the Parabolic Stop And Reverse (SAR) indicator has risen above the SHIB price.

The parabolic SAR indicator helps to identify trends and potential reversals using dotted lines displayed on the chart.

If the indicator’s dots are above the price, it indicates a bearish reversal, and the price might decrease. But if the same dots are below the price, it signifies support, implying that the price can jump.

In this case, SHIB’s price might face another decline, which could bring it down to $0.000017.

Meanwhile, this forecast might be invalid if SHIB gets support at $0.000020. Instead, the token’s value could climb to $0.000029, as shown by the 0.786 Fibonacci level.