SHIB Price Analysis: Exploring Meme Coin Risks and Potential Declines

Shiba Inu (SHIB) Struggling at Critical Levels

Shiba Inu (SHIB) is currently trading at $0.000013, still down 85% from its all-time high. According to Glassnode, SHIB’s Network Value to Transactions (NVT) ratio spiked on September 14 and remains elevated as of now. The NVT ratio measures the relationship between the market price and transaction volume, suggesting that SHIB's price appears to be at a premium in the short term. A low NVT ratio typically signals potential price increases, but in SHIB's case, a high NVT points to limited near-term price growth.

Resistance Levels and Price Predictions

Another indicator suggesting a potential decrease in SHIB price is the In/Out of Money Around Price (IOMAP), which tracks large volumes of cryptocurrency held at specific price levels. SHIB faces significant resistance at $0.000014, where over 10,000 addresses hold nearly 45 trillion tokens. This indicates that if resistance holds, SHIB's price could further decline to $0.000010.

SHIB's Price in a Downward Trend

The daily SHIB/USD chart also indicates resistance at $0.000014. Since June, SHIB has been trading within a descending triangle pattern, which is a bearish signal suggesting that sellers are in control. Unless SHIB breaks out of this triangle, it could face a decline of about 20%, pushing its price toward $0.000010.