SHIB Deposits on Exchange Drop to a 30-Month Low

In the last couple of weeks, the price action of the Shiba Inu token has been quite tepid. The market conditions have been bearish, which are not exactly enticing for investors.

This has resulted in a decline in activity where the meme token is concerned. This decline appears to have significantly intensified, which is both good and bad for investors in the Shiba Inu token.

Safe from crash

Presently, the price of the ShibaInu token is dependent on the broader crypto market for cues regarding its movements.

At publishing time, the meme token was trading at a price of $0.00000726 and it has managed to keep itself above the support level of $0.00000699.

In the case of the SHIB token, recovery appears to be a bit difficult, considering that there is not a lot of activity on the network.

Nonetheless, this does not mean that it can be completely ruled out. Gradual recovery would have to flip the 50-day Exponential Moving Average (EMA) of the SHIB token into a support level.

This would push it towards the barrier at $0.00000791. If it is able to breach and test it as a support level, it would lead to a recovery rally.

The indicators

If the Relative Strength Index (RSI) of the ShibaInu token climbs above the 50 mark, then a recovery rally in its price would be confirmed.

But, if bearishness has an influence on the price of the SHIB token, then it would drop below the support level of $0.00000699.

This would see the second-largest meme token in the market drop to lows of 2023 of $0.00000656. If it falls through this level, then the bullish thesis would be invalidated.

It would result in fresh year-to-date lows for the ShibaInu meme token.

Neutral sentiment

There have been both negative and positive developments seen in the ShibaInu token, which indicate that there may not be a crash or a rally in its price anytime soon.

The fact that active deposits from ShibaInu holders have declined is one of the most important signs to be considered.

Currently, this indicator has dropped to a low of 30 months, which highlights the lowest deposit activity to have been recorded since March 2021.

This is actually good for the meme token because it would mean that the potential for a downswing in the price action of the meme token is at a low.

However, there is also a decline in network growth and it has dropped to a four-month low. In fact, it has reached levels that had last been seen this year in May.

This indicates that new investors could be pulling back from becoming a part of the ShibaInu network because they do not see any incentive to do so, given the lack of a price rise.

Thus, there is unlikely to be an upswing in the price of the SHIB token due to lack of new addresses, while the lack of addresses is likely to prevent a price decline.

This suggests that the meme token is likely to see sideways price action moving forward.