Is the price of Shiba Inu (SHIB) about to plummet? 4 Bearish Signs to Watch for

TL;DR

SHIB is down 13% in two weeks amid negative sentiment on Telegram and declining network activity. However, some indicators, such as the increase in foreign exchange outflows, suggest a potential rebound in prices. Bears in control?

The popular meme coin has underperformed in the past two weeks, with its price plummeting by 13% (according to data from CoinGecko). Despite recovering some value from yesterday’s local peak, it still remains in the red.

SHIB Price, Source: CoinGecko

SHIB’s shaky situation coincides with four bearish indicators that suggest a further pullback in the near future. The first is the decline in net network growth (a boost signal that “pulses the actual growth” of the token’s underlying blockchain). According to IntoTheBlock, it is down 0.19% on a daily basis.

Next on the list is sentiment on Telegram. The data shows that more than 45% of the app’s SHIB-related messages are negative and only 5% are positive. 48% of those who discuss the currency of the meme remain neutral.

Shiba Inu is among the cryptocurrencies with the largest and most dedicated communities. As such, sentiment about messaging apps can affect buying and selling decisions, tipping the scales based on current mood.

The third bearish factor is the drop in large transaction volume (where each exceeds $100,000). According to data from IntoTheBlock, the number has reached about $45 million in the last 24 hours, representing a daily decrease of 35%.

Last but not least, we’ll talk about Shiba Inu’s layer 2 scaling solution: Shibarium. Some industry participants believe that further advancement of the protocol could fuel a SHIB rally based on the merits it offers to the entire ecosystem.

However, Shibarium has stalled its progress lately, with the number of daily transactions and new contracts falling in recent weeks. For more updates on the ecosystem, be sure to check out our Shibarium News page.

Something for the Bulls, too

It is worth mentioning that some indicators suggest that the price of the meme coin could be heading north soon. An example is the SHIB net exchange flow, which has been predominantly negative (outflows exceed inflows) over the past month.

SHIB Exchange Netflow, Source: CryptoQuant

This indicates a shift from centralized entities to self-custody methods, which reduces immediate selling pressure.

Also, crypto X is full of users predicting good days ahead for the self-proclaimed killer Dogecoin. Yoddha, for example, recently claimed that the price pattern had formed a specific triangle shape, which could be a precursor to a triple-digit rally if broken to the upside.

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