Shiba Inu’s (SHIB) price has been moving sideways for the last few days after failing to breach a crucial resistance.
The chances of recovery are getting slimmer as the selling pressure is rising which could keep SHIB subdued.
Shiba Inu Investors Could Offload
Shiba Inu’s price failed to breach the local resistance, which was marked at $0.00001961. The meme coin attempted to breach it two weeks ago but failed to do so.
Shiba Inu’s NVT (Network Value to Transactions) ratio has reached its highest point in a year and a half, suggesting that SHIB may be overvalued. The NVT ratio is a key metric used to assess the value of a cryptocurrency relative to its transaction volume.
A high NVT ratio often indicates that the market value is significantly higher than the network’s activity. This raises concerns about the sustainability of the current price levels. As a result, there could be a heightened risk of a price correction if the market begins to adjust to more realistic levels.
In addition to the high NVT ratio, Shiba Inu’s Relative Strength Index (RSI) is failing to sustain in the bullish zone. The RSI is a momentum indicator that measures the speed and change of price movements.
When the RSI remains in the bullish zone, it indicates strong buying momentum. However, Shiba Inu’s inability to maintain this position signals that selling pressure is rising.
Read More: How To Buy Shiba Inu (SHIB) and Everything You Need To Know
If the selling pressure continues to rise, Shiba Inu’s price could experience a downturn, making it essential to monitor these metrics closely.
SHIB Price Prediction: Staying in the Lane
Shiba Inu’s price could continue its consolidation as the broader market cues are not particularly bullish at the moment. The price levels of $0.00001961 and $0.00001473 have been tested as resistance and support in the past.
The aforementioned factors show that SHIB lacks the bullish momentum to breach the resistance. Thus, it could continue moving within these limits until either the selling pressure dissipates or strong bullish cues appear.
Read More: Shiba Inu (SHIB) Price Prediction 2024/2025/2030
On the other hand, if the support of $0.00001473 is lost, this bearish-neutral thesis would be invalidated. This is because Shiba Inu’s price would become vulnerable to a drop to $0.00001281 or lower.
Disclaimer
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