Despite a bullish start in the first week of November, the SHIB price has since witnessed bearish pressure, facing sell-offs at key resistance levels. Although the Shibarium blockchain continues to perform and achieve transaction milestones, its success has not been reflected in SHIB’s price. Additionally, declining on-chain metrics point towards a downward sentiment for the leading memecoin in the coming hours.
Loss-Making Addresses Surge To 80%
Amid the overall crypto market sell-off triggered by Binance’s $4.3 billion fine and the resignation of its CEO, CZ, the memecoin market lost most of the gains it had made in recent weeks. This turmoil significantly impacted SHIB’s price, which plummeted from its peak of $0.0000087, leading to a massive liquidation exceeding $1.2 million, as reported by Coinglass.
A number of on-chain metrics have shifted to a bearish outlook according to data from IntoTheBlock. The historical in/out of money analysis reveals an increase in loss-making addresses, now accounting for nearly 80%, which equates to over 1 million addresses. Only 13% of holders are in profit, while 7% are at break-even, experiencing neither loss nor gain.
This rise in loss-making addresses could impact the market, especially if long-term holders decide to sell off their holdings during a bullish reversal of SHIB’s price. A portion of these 80% of holders with growing impatience might choose to leave the market to cut their losses, potentially switching their investments to other high-volatility altcoins. Such a trend could further affect the bullish sentiment for SHIB.
The $0.000008 mark is crucial, as it represents a level where 314 trillion SHIB tokens are held, strengthening the resistance levels. Despite this, the continued high volatility, hovering above 60%, along with Shibarium’s increases in transaction activity, could still hold the bullish hope of SHIB’s price.
What’s Next For SHIB Price?
After dropping to the low of $0.0000076, SHIB price witnessed increased accumulation from buyers and triggered a rebound above immediate Fib channels. However, SHIB price is struggling to hold momentum near $0.000008, resulting in a selloff.
However, bulls aim for a surge above the EMA20 trend line. Encouragingly, the bulls are actively attempting to hold the $0.000008 level. Successfully holding the $0.000008 mark could indicate it has become a support level, enhancing the likelihood of a continued uptrend. If this happens, the SHIB price might climb to $0.0000087. Further surge above $0.00000965 will send the price toward $0.00001.
However, the Relative Strength Index (RSI) is hinting at the formation of a bearish divergence with declining EMA lines, suggesting a potential slowdown in momentum. For sellers to gain the advantage, they would need to drive and keep the price below $0.0000075, resulting in a consolidation near $0.0000066.