Shiba Inu (SHIB) price is not showing the most impressive performance despite breaking above the downtrend line.
The lack of investor support is a concern and it could cause the meme coin to lose momentum.
Shiba Inu investors remain skeptical
Shiba Inu’s price action has disappointed investors, leading to SHIB holders abandoning participation in the network. This is clearly shown through trading volume.
Average daily trading volume fell from $169 million in April to $38 million in May. This is a 77% drop, largely due to the waning meme coin craze, with only a few tokens as dogwifat (WIF) and Pepe (PEPE) posted gains.
Furthermore, the lack of optimism observed among investors extends to those who have not yet participated in the network. This is evident in the adoption rate, which is currently at an eight-month low.
Adoption rate measures the rate at which new addresses are formed on the network. This evaluates whether the project is losing or gaining traction in the market. In the case of SHIB, this acceptance rate is 29%, indicating that only 29% of the total active addresses are new investors.
While this is not the worst, it is not the best either as Shiba Inu have received more participation from new investors in the past.
SHIB Price Prediction: Possible price drop ahead
Shiba Inu price has broken above the downtrend line formed over the past 2 months. The meme coin is currently consolidated between $0.00002267 and $0.00002584.
However, considering the factors mentioned above, the likely outcome is a price drop below $0.00002267. This would take SHIB to $0.00002093 or lower and could erase half of the profits recorded during the rally from late February to early March.
Ichimoku Cloud also supports this result because its clouds are located above the candles and show a bearish trend. Ichimoku Cloud is a comprehensive indicator that helps identify support and resistance levels, determine trend direction, measure momentum, and provide trading signals.
As a result, Shiba Inu prices are likely to decline for the remainder of May.
On the other hand, if the meme coin can sustain the breakout, it could breach the $0.00002584 resistance. This would push SHIB up to $0.00002835 and turning it into support would invalidate the bearish thesis, pushing the meme coin further up..
