Shiba Inu: Why market sentiment is the last resort for the meme token

Utkarsh Gupta

Shiba Inu is not performing to its potential in November. That would be the point of perspective for its community, but a more difficult might be yet to come. The token is currently in a downwards direction since the beginning of the month. However, Shiba had some positive technicals. Its market cap is currently under $30 billion but it maintained its 11th position in the rankings.

Shiba Inu; Serving Positives first?

On-chain fundamentals determine the network health of an ecosystem. According to data, the meme token registered significant activity over the past month.

Source: Dune Analytics

Data from Dune Analytics suggested that the average SHIB transactions continue to rise in the ecosystem. More than 17,000 successful transactions were recorded on 11th November, and additionally, the number of ShibaSwap users has reached 115,600. Rising ShibaSwap users is beneficial for the expansion of its DEX, which may have a positive impact on SHIB in the long term. However, it does not eliminate immediate concerns.

Weakening Daily Chart

Source: Trading View

Shiba Inu’s daily chart is currently displaying the formation of a descending triangle. This particular pattern carries bearish repercussions and other indicators are currently suggesting the same. A bearish crossover can be witnessed between the 20-EMA and 20-MA, where the MA is hovering above the EMA. Buying pressure and Selling pressure had equal momentum but the trend was majorly bearish.

Overall, Shiba Inu may picture a bearish squeeze in the upcoming days, which may establish a drop down to $0.000022. The only bullish recluse would be bouncing back from support at $0.000036 but it seemed less likely.

Concentration Issues Remain

Source: EtherScan

Shiba’s concentrated accumulation is a major issue. Only 10 wallets control 63.5% of the total SHIB token supply and only Binance, were known entities. Hence, the possibility of a major whale dump remains in the cards for Shiba Inu. SHIB’s decreasing correlation with Bitcoin isn’t helpful either since it dismisses any chance of collective recovery.

Shiba Inu remains a tricky investment at the moment. Recovery signs would depend on market sentiment going forward as the market structure is strongly bearish.