- The price of SHIB has fallen by more than 3% in the past 24 hours
- A number of figures and indicators pointed to a soon trend reversal
Shiba Inu [SHIB] managed to break out of a bullish pattern a few days ago, indicating a massive bull rally. However, things on the ground turned out to be a little different as the memecoin’s value dropped over the past 24 hours.
Shiba Inu’s bullish move
Shiba Inu, the world’s second-largest memecoin, entered a bullish flag pattern in March. The memecoin consolidated into the pattern for several weeks. Finally, on May 14, the price managed to break above a bullish flag pattern. At the time this episode suggested that SHIB could turn bullish so that it could reach its March high again.
Source: TradingView
Days after the break, however, SHIB faced a roadblock as the Bears stepped up their game. In fact, according to CoinMarketCapSHIB has fallen by more than 3% in the past 24 hours.
At the time of writing, SHIB was trading at $0.00002482 with a market cap of over $14 billion, making it the eleventh largest cryptocurrency on the charts.
While this seemed concerning, there is more to it. Especially as SHIB may retest its support at $0.0000236 before gaining bullish momentum to regain $0.00003 in the coming weeks.
Which direction is SHIB going?
To see if SHIB would actually test that support or gain bullish momentum for it, AMBCrypto analyzed its on-chain metrics. According to our analysis of Santiment’s data, SHIB’s MVRV ratio has fallen in recent hours. This meant fewer investors made a profit.
Source: Santiment
In fact, outflows from SHIB exchanges also declined, meaning investors did not buy SHIB. On the contrary, active deposits have risen sharply over the past week. This showed that investors were selling their holdings – a sign that a further price drop may be coming.
On the contrary, AMBCrypto’s assessment of Glassnode’s data revealed a bullish benchmark. We found that Shiba Inu’s Network To Value (NVT) ratio showed a sharp decline on May 13.
For starters, a decline in the benchmark means an asset is undervalued, suggesting SHIB could turn bullish before its support is tested.
Source: Glassnode
To better understand what to expect from SHIB, AMBCrypto next analyzed the daily chart. According to our analysis, SHIB’s Relative Strength Index (RSI) recorded a slight increase above the neutral zone, lending more credence to bullish projections.
Read Shiba Inus [SHIB] Price prediction 2024-2025
Nevertheless, some other indicators told a different story. For example, the Money Flow Index (MFI) went south. Furthermore, the Chaikin Money Flow (CMF) remained well below the neutral line – a sign that SHIB could test its support at $0.0000236.