In the last 24 hours, the top meme cryptocurrency Shiba Inu has experienced a decrease of 10%. This decline is attributed to an increase in profit-taking by traders, who sold a massive $426 million worth on Tuesday, marking its largest one-day selloff since 2022.
With continued profit-taking, SHIB’s price could extend its decline. Here is why.
Shiba Inu Sellers Offload Coins For Profit
On the 7th of January, the Network Realized Profit/Loss (NPL) of SHIB reached an impressive peak of $426 million, which was its highest one-day value recorded since February this year.
The Net Asset Value Change (NPL) of a coin indicates the gap between the previous transaction price and the current market price. This value signifies the realized profit or loss experienced by users on the network.
When a non-performing loan (NPL) for an asset increases substantially, it suggests that a large number of the cryptocurrency’s owners are offloading their holdings at a profit. This sudden surge in selling activity can lead to a rise in selling pressure, which may cause the asset’s price to decrease, particularly if the market is unable to handle the increased volume of supply.
Additionally, Shiba Inu’s Relative Strength Index (RSI) supports this increase in selling activity. Currently, it stands at 41.96, which is beneath the 50-neutral line, and is moving downwards.
The RSI (Relative Strength Index) tool evaluates if an asset’s market conditions are excessively bought or sold. It spans from 0 to 100, with numbers over 70 meaning the asset is likely overbought, suggesting it could experience a downturn. Conversely, values below 30 imply the asset might be oversold and could potentially bounce back.
Looking at SHIB’s Relative Strength Index (RSI) at 41.96 indicates an escalating trend of sellers, signaling potential market vulnerability. As the RSI moves lower towards 30, there’s a possibility that the meme coin could experience further price decreases.
SHIB Price Prediction: More Declines Lie Ahead
For the past month on the daily chart, Shiba Inu (SHIB) has been moving along a descending parallel channel, which is a bearish sign formed by two trendlines that are sloping downward and parallel to each other. This pattern indicates repeated instances of lower highs and lower lows, suggesting continuous selling pressure. If SHIB continues within this channel, its price might decrease to approximately $0.000018.
If selling decreases and traders begin buying up the meme coin instead, the current bearish prediction would no longer hold true. This could lead Shiba Inu’s (SHIB) price to surge towards $0.000025, with potential further growth towards $0.000033.
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2025-01-08 16:36