The Shiba Inu price remains on edge this week as concerns about US tariffs and the Federal Reserve persist. SHIB, the second-biggest meme coin, was trading at $0.000012 on Wednesday, down by over 63% from its highest level in November last year. So, what lies ahead for the Shiba Inu coin as the number of active addresses, the MVRV-Z score, and whale transactions decline?
SHIB Addresses, MVRV, and Whale Transactions Fall
Data compiled by Santiment shows that the number of Shiba Inu addresses has continued falling this year, a sign that many holders have started to sell. This selling is likely due to panic among retail investors, fearing that the coin will continue to decline in the near term.
The number of active addresses in the last seven days was just 19,000, much lower than the November high of almost 80,000. In theory, a sharp decline in addresses should be a bad thing.
However, the chart below shows that the coin started crashing when these addresses soared to nearly 80,000. Additionally, the surge in November occurred following a period of weak address growth.
READ MORE: Shiba Inu Price Prepares Massive Surge: But Will Never Hit $1
Meanwhile, the Z score of the Market Value to Relative Value (MVRV) indicator has continued to fall and has been at its lowest since September last year. It has fallen to -2.195, down from last year’s high of 0.35. Similarly, most surges begin when the MVRV score is lower.
Another notable metric is the continued drop in the number of Shiba Inu whale transactions this year. This metric, which looks at the number of transactions worth $100K and above, dropped to 35 on March 19, down from 520 in November.
Furthermore, according to Santiment, the Mean Dollar Invested Age (MDIA) has surged to almost 60 in the last 90 days. The MDIA gauge looks at how each SHIB has remained in an address and then estimates the average age of all the cash used to buy the coin. A rising slope indicates holder accumulation, which is positive for the coin.
Shiba Inu Price Prediction
SHIB chart by TradingView
The daily chart shows that the SHIB token has been in a strong downtrend in the past few months. The price has declined from a high of $0.000033 in December to the current $0.000012.
Shiba Inu price has formed a falling wedge pattern, comprising two descending and converging trendlines. A wedge is considered one of the most bullish reversal patterns in the market.
The SHIB coin has also formed a significant double-bottom pattern at $0.00001225, with the pattern’s neckline at $0.000033. Therefore, the token will likely bounce back, with the initial target to watch is at $0.000020, up by about 65% above the current level. A drop below the support at $0.0000108 will invalidate the bullish view.
READ MORE: Shiba Inu Price Prediction: SHIB Eyes a 150% Surge
