The cryptocurrency market has been experiencing a significant decline, and Shiba Inu (SHIB) is no exception. With a current price of $0.000020, SHIB has decreased by 10.69% in the last seven days, raising concerns among investors. Several on-chain metrics suggest that SHIB's price may continue to fall, potentially dropping to $0.000018.

Network Value to Transactions (NVT) Ratio

The NVT Ratio, which measures the market cap of a token against its transfer volume, has been increasing for Shiba Inu. Historically, high NVT Ratios have coincided with market tops, while low ratios have foreshadowed bullish trends. The current increase in SHIB's NVT Ratio indicates overvaluation of the network, making it challenging for the price to bounce back.

Exchange Net Position Change

The Exchange Net Position Change indicator shows a positive value, signifying an increase in the supply ready for sale. This could lead to a further decline in SHIB's price.

Global In/Out of Money Indicator

The Global In/Out of Money indicator measures addresses in profit or loss and their potential to act as support or resistance for prices. The data shows a wide difference between addresses that bought at an average price of $0.000019 and those that bought between $0.000020 and $0.000023. This could lead to resistance at the upper level, potentially causing the price to decrease.

Conclusion

Shiba Inu's price decline may continue due to overvaluation, increased supply, and resistance at higher levels. Investors should be cautious and conduct thorough research before making any decisions. Remember, cryptocurrency investments carry high risks, and thorough analysis is essential.