The Shiba Inu (SHIB) price has been on a rollercoaster ride recently, with a sharp decline in the average transaction size raising concerns about a possible shift in investor sentiment. The average transaction size has dropped by 50% in the last two weeks, indicating a potential slowdown in buying activity and a reevaluation of the market.
Adding to the cautious stance, SHIB’s technical indicators, such as an overbought RSI and bearish EMAs, suggest upcoming corrections in the price. This could signal a difficult period ahead for SHIB, casting doubt on its ability to sustain the bullish momentum it has shown in recent weeks.
The correlation between the average transaction size and price movements is evident in the data from the past month. During a recent bull run, both metrics saw significant growth, but have since experienced a sharp decline. This gap between the drop in average transaction size and price correction may indicate further price drops in the near future.
Furthermore, the RSI for SHIB remains in the overbought stage, signaling a potential bearish momentum. An RSI value exceeding 70 suggests excessive buying activity, which could lead to a price retracement as the market seeks to find a balance between demand and supply dynamics.
The EMA lines for SHIB are also indicating a potential bearish momentum, with the short-term EMA lines nearing a crossover below the long-term EMA lines. This suggests a possible price decline if the trend continues, highlighting the uncertainty in the market sentiment.
Overall, the future of SHIB’s price remains uncertain, with potential support at $0.000023 and resistance at $0.000034. Market trends, sentiment, and crypto dynamics will play a crucial role in determining the direction of SHIB’s price movement in the coming days. Investors are advised to closely monitor these indicators to make informed decisions about their investments in SHIB.
