Shiba Inu （SHIB） has seen a decline in network activity, raising concerns about its short-term potential. An unusual spike in the Network Value to Transaction （NVT） ratio suggests the network may be overvalued.
Points
- Shiba Inu network activity has declined in active, zero-balance, and new addresses.
- The Network Value to Transaction （NVT） ratio spiked, indicating potential overvaluation.
- SHIB’s price has dropped from $0.000020 to $0.000015, reflecting bearish momentum.
Shiba Inu （SHIB）, the 12th-ranked cryptocurrency by market capitalization, is experiencing a notable decline in network activity, raising concerns about its short-term potential. Data from IntoTheBlock indicates a decrease in active, zero-balance, and new addresses on the Shiba Inu network over the past seven days.
Decline in Network Activity
Active addresses, which refer to users actively involved in transactions, have decreased, as have new addresses making their first transactions. Zero-balance addresses, representing participants yet to transact, have also declined. This overall reduction in user engagement implies a lack of demand for SHIB tokens.
NVT Ratio Spike
The Network Value to Transaction （NVT） ratio, a key on-chain metric, has shown an unusual spike. This ratio indicates whether a network is undervalued or overvalued. A low NVT ratio suggests the network is undervalued, with transactions outpacing market capitalization. Conversely, a high NVT ratio indicates overvaluation, which appears to be the case for Shiba Inu.
Price and Technical Analysis
SHIB’s price has dropped from a peak of $0.000020 to $0.000015 in the past three weeks, sparking bearish calls for further declines. The Awesome Oscillator （AO）, which measures market momentum, has fallen into the negative zone, indicating a decline in bullish momentum. If this trend continues, SHIB’s price may drop toward $0.000012.
Contrary Indicators
Despite the bearish momentum, the Money Flow Index （MFI）, which measures the flow of capital into a cryptocurrency, is diverging from SHIB’s price direction. This trend suggests that some market participants are buying the dip, potentially supporting the token’s value and preventing further declines.
解説
- Network Activity: The decline in Shiba Inu’s network activity signals waning user engagement and demand. This reduction can impact the token’s price and overall market sentiment.
- NVT Ratio: The spike in the NVT ratio indicates that Shiba Inu may be overvalued, raising concerns about its sustainability. Investors should monitor this metric closely to assess the network’s valuation.
- Technical Indicators: The Awesome Oscillator’s negative reading suggests bearish momentum, while the Money Flow Index’s divergence indicates potential support. Understanding these indicators can help investors make informed decisions.
- Market Sentiment: The contrasting signals from technical indicators reflect mixed market sentiment. Investors should consider both the bearish momentum and the potential support from buying activity when evaluating SHIB’s prospects.
In summary, Shiba Inu is facing a decline in network activity and bearish momentum, as
indicated by technical indicators. However, the potential support from buying activity suggests that there may be opportunities for a rebound. Investors should closely monitor these metrics and consider both the risks and potential upside when making investment decisions regarding SHIB.