TL;DR
- SHIB is down 13% in two weeks amid negative sentiment on Telegram and declining network activity.
- However, some indicators, like increased exchange outflows, suggest a potential price rebound.
Bears in Control?
The popular meme coin has been underperforming in the last two weeks, with its price plummeting by 13% (per CoinGecko’s data). Despite recovering some value from yesterday’s local peak, it still remains in the red.
SHIB’s shaky condition coincides with four bearish indicators that suggest further pullback in the near future. The first is the declining Net Network Growth (a momentum signal that “gives a pulse of the true growth” of the token’s underlying blockchain). According to IntoTheBlock, it is down 0.19% on a daily scale.
Next on the list is the sentiment on Telegram. Data shows that over 45% of the SHIB-related messages on the application are negative, and only 5% are positive. 48% of those discussing the meme coin remain neutral.
Shiba Inu is among the cryptocurrencies with the biggest and most devoted communities. As such, sentiment on messaging apps may impact buying and selling decisions, tipping the scales depending on the current mood.
The third bearish factor is the plunging large transaction volume (where each exceeds $100,000). Per IntoTheBlock’s data, the figure has reached around $45 million in the past 24 hours, representing a 35% daily decrease.
Last but not least, we will touch upon Shiba Inu’s layer-2 scaling solution – Shibarium. Some industry participants believe the protocol’s further advancement could fuel a SHIB rally based on the merits it provides to the entire ecosystem.
However, Shibarium has stalled its progress lately, with the number of daily transactions and new contracts going downhill in the past few weeks. For more updates on the ecosystem, make sure to check out our Shibarium news page.
Something for the Bulls, too
It is worth mentioning that some indicators suggest that the meme coin’s price could head north soon. One example is the SHIB exchange netflow, which has been predominantly negative (outflows surpassing inflows) in the past month.
This signals a shift from centralized entities toward self-custody methods, which reduces the immediate selling pressure.
In addition, crypto X is full of users who envision good days ahead for the self-proclaimed Dogecoin killer. Yoddha, for instance, recently claimed that the price pattern had formed a specific triangular shape, which could be a precursor of a triple-digit rally if broken to the upside.
