Recent weeks have witnessed a significant reduction in the Shiba Inu cryptocurrency‘s average transaction value, with a 50% drop indicating a shift in investor sentiment. The meme coin’s transaction size has shrunk in tandem with a price decline, hinting at a slowdown in trading activity. This development suggests a potential market reassessment, as enthusiasm for purchases of the digital currency appears to be waning.
Transaction Trends Reflect Cooling Interest
An analysis of Shiba Inu’s monthly transaction data shows a dramatic fluctuation. From February 21 to March 6, the average value of transactions surged by over 300%, coinciding with a substantial price increase. However, the following weeks saw these figures dive. Between March 11 and March 21, the average transaction size plummeted by over 54%, alongside an 18% drop in Shiba Inu’s price, possibly foreshadowing further price corrections.
Technical Indicators Signal Overvaluation
Shiba Inu’s Relative Strength Index (RSI) remains in the overbought territory despite the price dip, maintaining a high level of 81. This overbought condition traditionally hints at an impending price decline, as the market may adjust for the discrepancy between supply and demand. While the RSI has slightly decreased, it still indicates strong buying pressure that might not be sustainable.
EMA Lines Predict Price Movement
Technical analysis of Shiba Inu’s Exponential Moving Average (EMA) lines predicts a potential decline. The crossover of short-term EMA lines beneath the long-term ones typically signifies downward pressure on the price. Additionally, the current proximity of the EMA lines to the price signals a consolidation phase, whereby any significant news or market reactions could tip the price direction.
Investors now question whether Shiba Inu can maintain its support level as market indicators point to a tentative stance. The ongoing developments and market sensitivity will be key in determining the direction of the coin’s price trajectory in the near future.