This is why SHIB investors may need to remain watchful over the weekend

• Negative sentiments around SHIB were dominant in the market 
• Market indicators supported the bears, suggesting a further price plummet 

Shiba Inu [SHIB] recently tweeted about an upcoming event related to its metaverse. As the Rocket Pond reveal date draws closer, SHIB suggested that enthusiasts stay tuned for an exclusive look at its metaverse.  

Read Shiba Inu’s [SHIB] Price Prediction 2023-24

A pale face put forth by SHIB

SHIB’s price responded to such events on multiple occasions in the past with a price pump. However, this time the scenario was different, as SHIB remained inactive.

It was surprising to see that instead of reacting positively, bullish sentiments around SHIB declined by more than 40% in the last 24 hours.

According to CoinMarketCap, SHIB’s price declined by more than 3% in the last 24 hours. At the time of writing, it was trading at $0.00001027 with a market capitalization of over $6 billion.

Despite the negatives, SHIB’s burn rate continued to impress many as it increased by more than 5000% in the last 24 hours, which looked optimistic in the long term.

Source: Shibburn

These metrics were against SHIB

Data from CryptoQuant revealed that SHIB’s net deposits on exchanges were high as compared to the last seven-day average. Higher deposits can be interpreted as higher selling pressure, a possible reason for SHIB’s negative price action.

Moreover, Shiba Inu’s Market Value to Realized Value (MVRV) Ratio was also down considerably, which was bearish. SHIB‘s supply outside of exchanges remained flat throughout the week, suggesting that investors were not purchasing the token. 

Source: Santiment

Are investors losing confidence here?

Negative sentiments around SHIB dominated the market. This was a red signal, as it indicated less faith among the crypto community in the meme token.

Not only that, but LunarCrush’s data revealed that SHIB’s social mentions declined by over 40% in the last 24 hours, which indicated that the token was losing its popularity. Nonetheless, it was encouraging to see a slight rise in the amount of SHIB holders. 

Source: Santiment

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A look at SHIB’s daily chart revealed more reasons for concern. The Exponential Moving Average (EMA) Ribbon suggested that the bears were ahead of the bulls. 

Furthermore, Shiba Inu’s Relative Strength Index (RSI) registered a downtick and was headed further below the neutral mark of 50. The Money Flow Index (MFI) also followed the RSI, which looked troublesome. However, SHIB’s Chaikin Money Flow (CMF) gave some hope as it went up. 

Source: TradingView