Popular meme coin Shiba Inu (SHIB) posted impressive gains last week. However, analysts have identified bearish signals on SHIB’s price chart. Meanwhile, Coinbase data shows that SHIB has a higher average hodl time than Bitcoin or Ethereum. According to analysts, this is also an indication of decreasing volatility in SHIB.
“SHIB may see a decline in market conditions”
Shiba Inu’s performance in the last thirty days has really upset SHIB holders. However, analysts see SHIB likely to decline in the short term as volatility plummets. With this cryptocoin.com As you follow, SHIB has gained about 5% in the last two weeks. Despite consistent gains in the Shiba Inu ecosystem, analysts say holders now need to be careful. SHIB holders were expecting a massive rally in the token as the governance token BONE witnessed a peak in demand. However, a market-wide drop resulted in a drop in the token price.
The developers capped the current supply of BONE to over 230 million. It also officially stopped minting money. Despite the widespread adoption and growing utility of the BONE, the Shiba Inu failed to make a comeback. Shibarium, the upcoming layer-2 solution, needs 20 million BONEs for the protocol to work. Delegators, those with designated roles within the ecosystem and Blockchain will receive a BONE award for their efforts.
TREAT, Shiba Inu’s upcoming reward token, will soon enter the ecosystem as part of the SHIB ecosystem development. Shytoshi Kusama, leader of the Shiba Inu project, commented on TREAT. Kusama noted that the team does not want to rush to another cryptocurrency in the ecosystem before the use case. Hence, he suggested that the token was developed silently.
Analysts have a bearish view for the Shiba Inu
Meanwhile, analysts identified bearish signals on the SHIB price chart. The next resistance for the Shiba Inu stands at $0.00001323. The popular meme token is currently trading at $0.000001312. If the Shiba Inu fails to stay above the $0.0001279 level, a drop is possible.
A recent report by Coinbase revealed that the Shiba Inu has been held in wallets longer than Bitcoin and Ethereum. This shows that the meme coin’s lack of volatility is causing a longer hodl period. According to analysts, this likely means that traders are bullish and want to hold the SHIB for a long time. On the other hand, analysts have a bearish view on SHIB. Therefore, holders are likely to slow their purchases of SHIB and expect an increase in volatility.
