Let's examine what's happening in the Shiba Inu (SHIB) market and what to expect from the cryptocurrency's price.
Shiba Inu Loses Investors
The adoption rate of Shiba Inu has recently fallen to a four-year low. Over the past two months, SHIB has not shown significant growth, making it less attractive to new investors. This decline in adoption reflects waning interest in the token, as potential investors are hesitant to invest in an asset that isn't generating profits.
This stagnation worsens SHIB's position. Without active participation from buyers, the cryptocurrency lacks fuel for growth, making it difficult to break out of the downward trend.
The MVRV Long/Short Difference indicator at the time of publication is -5.5%. This means that both long-term holders (LTH) and short-term holders (STH) are not currently receiving significant returns, which is a worrying sign for Shiba Inu.
Under these conditions, investor sentiment is likely to remain subdued - this only makes it more difficult for the altcoin's price to recover.
SHIB Forecast: Breakthrough Possible
At the time of writing this analysis, SHIB is trading at $0.00001541, showing no clear directional dynamics over the past 24 hours.
After an unsuccessful attempt to overcome resistance at $0.00001676, the cryptocurrency is "stuck" below the downtrend line. This downtrend has been ongoing for more than two and a half months. If the market situation doesn't change, Shiba Inu is likely to continue declining.
If the current decline continues, SHIB may retest the support level at $0.00001462. If this level is lost, the fall risks deepening. This fall will increase investor losses and worsen market sentiment.
However, if SHIB can break through the resistance at $0.00001676 and turn it into new support, then the road to $0.00001961 and higher will be cleared - possibly the price could reach $0.00002000. Such a surge would invalidate the bearish forecast and could mark the beginning of a trend reversal.
