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Here Is Why Shiba Inu (SHIB) Price Could Drop By 23% Soon


Mar 24, 2024 #drop, #Inu, #Price, #SHIB, #Shiba

The Shiba Inu (SHIB) price has seen a sharp decline, with the average transaction size dropping by 50% in the last two weeks. This points to a possible change in investor sentiment towards Shiba Inu. The decrease in transaction size might indicate a slowdown from the recent surge in buying, perhaps signaling a wider market reassessment.

Adding to the cautious stance, SHIB’s technical indicators, such as an overbought RSI and bearish EMAs, suggest upcoming corrections. These factors suggest SHIB could be heading into a difficult period, raising questions about its ability to continue the bullish momentum it has shown recently.

Average Transaction Size Is Declining

Analyzing SHIB’s Average Transaction Size for the past month will print an interesting scenario. From February 21 to March 6, it grew from $10,139 to $42,491. That represents a 319.08% growth in roughly two weeks. In that same period, SHIB’s price grew from $0.000009 to $0.000034, a 277.78% growth. As we can see, during the recent bull run, these metrics appear to be correlated.

SHIB Average Transaction Size.
SHIB Average Transaction Size. Source: IntoTheBlock.

Then, the average transaction size grew more, and then it started to fall heavily. From $49,816 on March 11 to $22,824 on March 21, a -54.18% drop. In that same period, SHIB price dropped from $0.000033 to $0.000027, a -18.18% decrease.

Since these two metrics seem to be very correlated in the last few months, this gap between this huge drop in average transaction size and price correction may be closed in the next few days, as SHIB prices potentially drop even more.

Read More: Shiba Inu (SHIB) Price Prediction 2024/2025/2030

SHIB RSI Is Still In The Overbought Stage

Generally, an RSI value exceeding 70 indicates that the asset may have been subject to excessive buying activity, raising the likelihood of a forthcoming retracement as the market endeavors to find a balance between demand and supply dynamics.

SHIB RSI 7D. Source: Santiment.

The RSI metric itself serves as a crucial tool in technical analysis, acting as a momentum oscillator that measures the speed and change of price movements within a range of 0 to 100, based on recent price increases and decreases. SHIB’s RSI progression from 88 on March 11 to 81 by March 21, despite reflecting a modest reduction in buying momentum, unmistakably keeps it within the overbought territory.

This condition is traditionally interpreted by investors as a bearish indicator, suggesting that the asset has been under considerable buying pressure, which might not be sustainable over time. As a result, the expectation is for SHIB price to potentially decline as the market naturally adjusts to these dynamics, aligning closer to its intrinsic value.

SHIB Price Prediction: Will SHIB Hold The $0.000023 Support?

The Exponential Moving Average (EMA) lines for SHIB are currently indicating an interesting scenario in their price movement, with the short-term EMA lines nearing a crossover below the long-term EMA lines. This potential crossover is a significant technical indicator that suggests a bearish momentum might be on the horizon, implying that the price could be set to decline if the trend continues.

Furthermore, the fact that the EMA lines are very close to each other and to the current price line indicates a lack of strong momentum in either direction, suggesting that the market is in a state of uncertainty. When the EMA lines hover near the current price, it often signals a consolidation phase, where the price could break out in either direction depending on market sentiment and upcoming developments.

SHIB 4-Hour Price Chart and EMA Lines.
SHIB 4-Hour Price Chart and EMA Lines. Source: TradingView.

EMA lines give more weight to recent prices, making them react quicker to market changes than SMAs. They help spot trend directions and potential reversals. A short-term EMA dropping below a long-term one suggests a bearish outlook; a rise above indicates bullish potential.

Read More: 11 Best Shiba Inu (SHIB) Wallets in 2024

SHIB’s price is $0.000026, just above the $0.000023 support. If it breaks, $0.000020 could be next. If the trend reverses, it might challenge the $0.000034 resistance, possibly reaching $0.000038.

Market trends, sentiment, and crypto dynamics greatly influence these scenarios, underlining the importance of monitoring these indicators.



In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.


In conclusion, the Shiba Inu (SHIB) price has experienced a significant decline, with the average transaction size dropping by 50% in the past two weeks. This decrease in transaction size could indicate a shift in investor sentiment towards SHIB, potentially signaling a broader market reassessment. Technical indicators, such as an overbought RSI and bearish EMAs, suggest possible upcoming corrections in the SHIB price. The correlation between the average transaction size and price movements highlights the importance of monitoring these metrics closely. Overall, the current market conditions point towards a challenging period for SHIB, raising doubts about its ability to sustain the recent bullish momentum.

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