Influence of Blockchain Activity on SHIB Price and Short-Term Potential Analysis
When it comes to cryptocurrencies like Shiba Inu (SHIB), high activity on the blockchain usually has a direct impact on the price of the native token. However, recent data suggests that SHIB may be facing issues due to a lack of significant interaction on the network.
Concerns about SHIB’s Decline in Network Activity
Recent investigation into the Shiba Inu network has revealed a decline in various on-chain metrics such as active addresses, zero balances, and new addresses. Active addresses indicate user participation in transactions, while new addresses represent first-time transactions and zero-balance addresses show inactive participants.
This decline in user engagement is concerning, as it signals a lack of demand for SHIB and could hinder its price recovery in the future.
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Moreover, the Network Value to Transactions (NVT) ratio for SHIB has increased significantly, indicating that the network may be overvalued and struggling to efficiently handle transaction volumes.
SHIB Price Prediction and Market Analysis
Currently, SHIB is trading at $0.000015, with previous highs of $0.000020 indicating bullish sentiment for a price increase. However, technical indicators like the technical oscillator (AO) and the Money Flow Index (MFI) suggest conflicting signals.
If the AO continues to decline, SHIB’s price may drop to $0.000012, but a positive trend in the MFI could lead to a price increase towards $0.000019 in the near future.
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