Shiba Inu is struggling to break out of its recent downswing.
On-chain data shows how the network growth decline and sell pressure from long-term holders could slow down SHIB price resurgence.
Shiba Inu Network Is Not Growing
Holders of Shiba Inu have endured sideways movement by the popular meme coin in recent weeks. The recent decline in the network traction has cooled early signs of a potential price resurgence.
According to Glassnode, the number of new network participants joining the Shiba Inu network has been down since early February 2023.
In the chart below, Glassnode reports that new wallet addresses created on the Shiba Inu network have declined from 4,575 on Feb. 4 to 1,696 addresses at the close of March 21.
When the number of new addresses on a blockchain network declines, it denotes dwindling interest in its core service offerings. Unless this trend is reversed, SHIB may struggle to find new demand in the coming weeks.
Furthermore, the dwindling balances of long-term holders also validate the bearish outlook for SHIB. As reported by Santiment, the Mean Coin Age of SHIB tokens in circulation has plunged sharply.
In the Santiment chart below, SHIB Mean Coin Age (90d) has dropped from 44.63 on Feb. 2 to 29.06 as of March 22.
As noted, the Mean Coin Age (90d) data shows the average number of days recently traded tokens stayed in their current address. A sharp decline usually indicates a selling trend among long-term holders.
The piling sell-pressure from long-term Shiba Inu holders could cause panic among crypto investors. This could trigger a further price decline.
Is $0.000008 the Next Price Stop For Shiba Inu?
The Global In/Out Of Money (GIOMAP) data compiled by blockchain forensics firm IntoTheBlock indicates that SHIB could soon drop toward $0.000008.
Having failed to break out of the $0.000011 resistance zone over the past week, SHIB holders can now expect a downswing toward $0.000008, the minimum price that 200,000 addresses paid for nearly 47 trillion SHIB tokens.
Failure to hold this level could see SHIB slide further to reach $0.000006, where another 154,000 addresses that bought 53 trillion tokens can ease the slump.
Still, the bulls could take charge again if SHIB breaks out of its current resistance zone at $0.000012. Where 138,000 addresses initially bought approximately 93 trillion tokens.
If this resistance is broken, SHIB can head on a prolonged upswing toward $0.000012. Where 100,000 addresses have purchased a combined 466 trillion SHIB tokens.
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