In October, the Shiba Inu (SHIB) price rose 10%, sparking speculation that the token could extend this rally. But as November began, everything seemed to change.
At the time of writing, the price of SHIB is $0.000018. This is why the value of the cryptocurrency may decline over the next few weeks.
Investor interaction with Shiba Inu Drops
For much of the past month, Shiba Inu Daily Active Address (DAA) differentials have remained positive, reflecting steady price increases along with increased user interaction. The DAA price metric shows how user engagement correlates with SHIB’s pricing performance. When both indicators rise together, it indicates that active user participation is strengthening the price trend.
However, recent data from Santiment shows a shift: DAA price discrepancy has decreased by 20%. This drop suggests a decline in the number of active addresses interacting with SHIB, a trend historically associated with falling prices. If this decline in DAA continues, Shiba Inu could see further declines, potentially testing support levels below $0.000018.
Read More: 12 Best Shiba Inu (SHIB) Wallets in 2024
Additionally, on-chain data from IntoTheBlock indicates a decrease in the holding time of Shiba Inu coins over the past week. This indicator reflects the average length of time SHIB coins are held before being sold.
The decrease in coin holding time suggests that SHIB investors are becoming more active in selling rather than holding them for longer periods.
The trend could be interpreted as a sign of weakening investor confidence, indicating that shareholders may be looking to liquidate their positions amid a perceived lack of upward momentum. If this trend continues, it could put further downward pressure on the SHIB price, especially given the previously mentioned drop in the number of active addresses.
SHIB price forecast: buyers trapped, decline ahead
On the daily chart, the price of SHIB broke out of the descending triangle pattern on October 29. This breakout is often seen as a bullish signal, suggesting that the price could potentially trend higher.
However, SHIB price fell back into a descending triangle pattern, indicating that the initial breakout may have been false.
A scam occurs when the price briefly rises above a resistance level or pattern only to quickly reverse, trapping buyers expecting further gains. Additionally, the Relative Strength Index (RSI) value also declined, indicating a decline in bullish momentum.
Read more: Shiba Inu (SHIB) Price Forecast for 2024/2025/2030.
As it stands, the price could drop to $0.000015 and SHIB investors may have to cope with losses. However, if the token rises above the triangle again, the value could rise to $0.000022.
