SHIB Breakout Attempt Unsuccessful

Shiba Inu has not quite lived up to expectations once again, as the beloved meme coin has faced difficulty in surpassing the crucial 50 EMA resistance level. Instead, it has retraced below this level, causing concern that it may lose traction and drop back to previous price levels. At the moment, SHIB seems to be facing some challenges.

A closer look at the technical analysis shows that SHIB is struggling to maintain its upward momentum. The failed attempt to break through the 50 EMA has led to a pullback, pulling SHIB below this important resistance level. This setback could potentially result in further declines, with SHIB possibly heading towards the $0.000024 support level. If this support fails, the next stop could be around $0.000022, another critical support area to watch.

Check out the SHIB/USDT Chart on TradingView

Recent on-chain data is adding to the existing concerns. The number of large transactions, which are transactions exceeding $100,000, has spiked recently, with 378 large transactions recorded in the past 24 hours. While this surge in large transactions might indicate heightened activity among whales, it also raises the possibility of significant selling pressure. The total volume of large transactions has reached 8.97 trillion SHIB, approaching the seven-day high of 9.6 trillion SHIB.

Moreover, the Network Value to Transaction (NVT) ratio has dropped by 22.70% in the last day, indicating a decline in market value relative to transaction volume. This decrease in the NVT ratio could suggest diminishing market confidence, with investors possibly feeling uncertain about SHIB’s short-term performance.

The recent struggles of Shiba Inu with the 50 EMA resistance level and subsequent retracement are raising potential worries for the meme coin. The technical analysis hints at a possible decline towards crucial support levels, while on-chain data reveals heightened large transaction activity and a decreasing NVT ratio, pointing towards possible market fragility.

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