Despite a bullish start in the first week of November, SHIB price has witnessed bearish pressure since then, with sell-offs at key resistance levels. While the Shibarium blockchain continues to perform and reach transaction milestones, its success is not reflected in SHIB’s price. Furthermore, the declining on-chain metrics point to downside sentiment for the leading memecoin in the coming hours.
Loss-making addresses rise to 80%
Amid the general sell-off in the crypto market caused by Binance’s $4.3 billion fine and CEO CZ’s resignation, the memecoin market lost most of the gains it had made in recent weeks. This turmoil had a significant impact on SHIB’s price, which plummeted from its peak of $0.0000087, leading to a massive liquidation of over $1.2 million, as reported by Coinglass.
According to data from IntoTheBlock, a number of on-chain metrics have shifted to a bearish outlook. The historical in/out money analysis shows that the number of loss-making addresses is now almost 80%, which amounts to more than 1 million addresses. Only 13% of holders make a profit, while 7% break even and experience no loss or profit.
This increase in the number of loss-making addresses could impact the market, especially if long-term holders decide to sell their holdings during a bullish reversal in SHIB’s price. A portion of this 80% of holders with growing impatience may choose to exit the market to cut their losses, possibly switching their investments to other high-volatility altcoins. Such a trend could further influence bullish sentiment for SHIB.
The $0.000008 mark is crucial as it represents a level at which 314 trillion SHIB tokens are held, strengthening resistance levels. Nevertheless, the continued high volatility, hovering above 60%, along with the increase in Shibarium’s transaction activity, could still fuel bullish hopes for SHIB’s price.
What’s next for the SHIB Prize?
After falling to a low of $0.0000076, SHIB price witnessed increased accumulation of buyers and triggered a recovery above the direct Fib channels. However, SHIB price is struggling to maintain momentum near USD 0.000008, resulting in a sell-off.
However, bulls are aiming for a rise above the EMA20 trendline. Encouragingly, the bulls are actively trying to hold the $0.000008 level. Successfully holding the $0.000008 mark could indicate that this has become a support level, increasing the chances of a continued uptrend. If this happens, SHIB price could rise to $0.0000087. A further rise above USD 0.00000965 will send the price towards USD 0.00001.
However, the Relative Strength Index (RSI) indicates the formation of a bearish divergence with declining EMA lines, indicating a possible slowdown in momentum. If sellers want to gain the advantage, they must keep the price below $0.0000075, resulting in a consolidation of almost $0.0000066.