- The Average Transaction Size of SHIB is reported to have reduced by 88% to $4,707 from the $39,000 recorded on February 3.
- Analysts believe that the price of SHIB could continue its bearish extension as key market indicators show bearish signs.
Shiba Inu (SHIB) has currently lost a crucial support level to trade at $0.00001531 after declining by 4% in the last 24 hours and 5% in the last seven days. Meanwhile, investors’ engagement has significantly improved as the 24-hour trading volume increased by 50%, with $257 million changing hands.
Technical Analysis
According to analysts, SHIB could continue its downward trend as a parabolic SAR indicator shows a cluster of dots above the price. Interestingly, the Relative Strength Index (RSI) also shows that the asset is hovering within the neutral-to-bearish territory with a reading of 45. In this case, the price could decline further to $0.000015 if buyers fail to seize control from sellers. On the other side, SHIB could bounce back to the near psychological level of $0.000017 if whales aggressively increase demand.
Currently, the whale accumulation pattern has been a complete disappointment as large-scale investors significantly reduce their exposure to SHIB. According to IntoTheBlock’s Average Transaction metric, the Average Transaction Size of SHIB has reduced by 88% from the $39,000 recorded on February 3 to the $4,707 recorded on February 16.
Based on our research, this metric basically tracks buy and sell trades by whale investors. An increment in the average transaction size implies that either whales or retail investors are deploying larger capital. A decline, however, signals a reduction in investors’ confidence.
In some cases, sharp declines have preceded price recoveries. Meanwhile, a sharp drop in whale activities could also signal a redistribution phase. In this scenario, retail investors accumulate the asset at a lower level before a major surge.
Amidst the backdrop of this, the SHIB’s burn rate has jumped by 381% in the last 24 hours. As highlighted in our previous article, 14.27 million SHIB tokens have been permanently removed from circulation.
Currently, it is expected that the SHIB’s average transaction size will stabilize. If this happens, the asset will stage a bullish reversal into the $0.000018 level. Basically, the 50-day Exponential Moving Average (EMA) at $0.00001682, as well as the 100-day EMA at $0.00001889, are now the existing resistance levels.
Could Shib ever Touch $0.1
While several crypto analysts agree that SHIB could “kill multiple” zeros in the future, as outlined in our recent blog post, a renowned trader identified as Crypto Prophet believes that the asset lacks the “willpower” and the fundamental drivers for long-term growth.
According to him, $0.1 is almost impossible for the asset with its enormous circulating supply of 589 trillion. Meanwhile, crypto analyst MMBTtrader expects SHIB to make an explosive surge to $0.000038 in the short term, and then proceed to an unimaginable height. This aligns with the previous prediction of analyst Professor Crypto. As we reported in January, this analyst expects SHIB to hit $0.0004 in the short term.
