Shiba Inu, formerly a dominant meme coin, is currently ensnared in a prolonged downturn. Its price continues to grapple with recovery, causing anxiety among current holders and potential investors alike.
The fading allure of Shiba Inu as an investment has led to a notable drop in confidence. This extended downward trend, coupled with an overall lack of progress, is dampening enthusiasm among existing stakeholders and newcomers.
Shiba Inu Losing Investor Appeal
The adoption rate for Shiba Inu has plunged to a four-year low, signaling a diminishing interest in the token. Over the past couple of months, SHIB has failed to show substantial growth, thereby dissuading new investors. This decrease in adoption mirrors an overarching reluctance to engage with an asset that displays minimal activity.
The absence of compelling incentives for fresh participants has fueled SHIB's price stagnation, exacerbating the altcoin's challenges.
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The dwindling adoption rate is worrisome as it indicates that Shiba Inu is losing traction in the wider cryptocurrency market. Consequently, the altcoin faces mounting difficulty in attracting new funding, heightening the likelihood of continued downward pressure on its price.
Shiba Inu Adoption Rate. Source: IntoTheBlock
The MVRV Long/Short Difference indicator currently sits at -5.5%, revealing a standstill in profitability for both long-term holders (LTHs) and short-term holders (STHs). This lack of substantial gains for either group raises concerns for Shiba Inu. The muted investor sentiment among LTHs and STHs suggests that the altcoin's price recovery may face obstacles.
Uncertainty looms over Shiba Inu's price trajectory as investor sentiment remains tepid. With stagnant activity among holders and investors, a prompt rebound appears uncertain.
Shiba Inu Long/Short Difference. Source: Santiment
SHIB Price Outlook: Potential Breakout
Shiba Inu's current price rests at $0.00001537, struggling below the downtrend line after failing to surpass the resistance level at $0.00001676. This stubborn resistance has impeded SHIB's upward momentum. The protracted downtrend spanning over two months points to possible further declines unless market conditions undergo a substantial shift.
Continued drawdown could lead SHIB to test the crucial support level at $0.00001462. The breach of this level might trigger additional price drops, amplifying losses for investors. Given the weak adoption and sentiment trends, SHIB could breach this support level.
Shiba Inu Price Analysis. Source: TradingView
Conversely, breaching and consolidating above $0.00001676 could propel SHIB towards $0.00001961 and potentially even breach the $0.00002000 mark. This scenario would debunk the current bearish outlook, signaling a potential reversal and reigniting investor interest. However, the likelihood of this recovery hinges on shifting market conditions and investor sentiment.