According to U.Today, Shiba Inu, the popular meme coin, has failed to break through the crucial 50 EMA resistance level, indicating potential trouble for the cryptocurrency. The coin has retraced back below this key level, suggesting a possible loss of momentum and a return to previous price levels. Technical analysis reveals that Shiba Inu is struggling to maintain its upward trajectory, with the price action indicating a failed attempt to surpass the 50 EMA. This has resulted in a pullback that has brought the coin below this significant resistance level, potentially leading to further decline.
The coin could be heading towards the $0.000024 support level. If this support fails to hold, the next target could be around $0.000022, another crucial support area. On-chain data adds to these concerns, with a recent spike in the number of large transactions, defined as those exceeding $100,000. In the last 24 hours, 378 large transactions were recorded, indicating a surge in activity among whales. However, this also raises the possibility of significant selling pressure, with the total volume of large transactions reaching 8.97 trillion Shiba Inu, nearing the seven-day high of 9.6 trillion.
Furthermore, the Network Value to Transaction (NVT) ratio has dropped by 22.70% in the last 24 hours, suggesting a decline in market value relative to transaction volume. This decrease in the NVT ratio could imply weakening market sentiment, with investors potentially losing confidence in Shiba Inu's short-term performance. The coin's recent failure to break through the 50 EMA resistance level and the subsequent retracement indicate potential trouble for the meme coin. The technical analysis points to a possible decline towards key support levels, while on-chain data reveals increased large transaction activity and a falling NVT ratio, signaling potential market weakness.