Since reaching its local high of $0.0000012 on April 15, the price of Shiba Inu (SHIB) has dropped by 10%. However, on-chain data suggests that further decline could be in store for the popular meme coin.

Despite a flurry of product launches and partnerships, the Shiba Inu ecosystem has struggled to attract new users, which could impact its price performance in the coming weeks. According to data from Santiment, Shiba Inu network growth has declined by 30% over the past two weeks, indicating a potential lack of demand for the token.

The Network Value to Transaction Volume (NVT) ratio for SHIB also suggests that the token may be overvalued at its current prices. The NVT ratio has surged by over 400% between April 16 and April 26, indicating that the market capitalization of SHIB may not be supported by its underlying transactional activity.

IntoTheBlock’s Break-Even Price distribution data predicts that Shiba Inu bears could force a downsizing to $0.000008, with potential support from 36,000 addresses holding 10.64 trillion SHIB tokens. However, if this support level fails, the price could decline further toward $0.000008, with potential support from 252,000 addresses holding 60 trillion tokens.

The bulls could negate this pessimistic outlook if SHIB price rises beyond $0.000010. However, some resistance may be encountered from the 36,000 addresses holding 10.64 trillion tokens at this price range. If this resistance level fails to hold, the Shiba Inu bulls could potentially ride the rally toward $0.000016.

By Chill