The token with the largest market capitalisation of all Dogecoins, Shiba Inu (SHIB), was down by 3% at $0.000021 on January 12, although buyers are still reluctant.
Although there are indications that the rest of the cryptocurrency market has bumped into a period of consolidation or rebound in the month of December, the buying pressure in SHIB remains relatively weak which begs the question of whether it can rally above $0.000025.
Between January 5, 2021, and January 9, 2021, six days, SHIB was dragged to a 10.4% loss to trade at $0.000021 from a $0.0000235 opening. However, the price has been trading higher in the recent days as seen in the chart; it has managed to trade far above the $0.0000208 level it was at on the 9 th of January but yet, the bulls have not been able to force themselves through strong buying pressure.
Shiba Inu’s Network Shrinks as New Adoption Rate Declines
This is in contrast to other alts such as SUI and Cardano (ADA) that have bounced back more strongly demonstrating the reluctance of traders to embrace memecoins during the current market phase.
A deeper dive on Shiba Inu on-chain metrics show that the network is shrinking. Even SIAs New Adoption Rate into IntoTheBlock shows that the proportion of community wallet addresses that made their first transaction in the Shiba Inu network reached its highest level of 40% on January 8 before sliding to 27.71% on January 11, down by 12.29% in three days.
This rapid decline in new-user acquisition may also imply that the broader market continues to depress more conservative crypto participants from interacting with SHIB. The current price of Shiba Inu shows that investors are in two minds about the cryptocurrency: SHIB is presently on $0.00002169.
Daily Bollinger Bands (BB) are shown below with lesser fluctuations, with SHIB oscillating around the middle band at $0.00002232. Bullish break of this high could aim for the higher Bollinger band at $0.00002456, with SHIB scooting towards $0.00002500 with sharp buying traffic.
However, low trading volume, currently at 799.93 billion, remains a worry in regard to an extended upward trend. On the other hand, if it fails to move past $0.00002232, it means that more sellers could be attracted to the cryptocurrenc. Any breakdown below the lower Bollinger Band of $0.00002009 may pull SHIB down to $0.00001853 which was the December low.
The near-term trend defines the major trend or, in other words, the direction of the movement for SHIB. The breakout to the upside would need an increase in the general trading volume and upbeat market sentiment, while a fall below crucial support levels suggests further sell off.
As the memecoin sector comes under pressure due to broad-based market indecision, Shiba Inu’s prospects rely on new demand base and bearish influence. However, the trader continues to hold their breath to determine if SHIB can bounce back up.
