Find out what to expect from Shiba Inu price as MVRV forms a “death cross” signal and a head and shoulders pattern emerges on the 4-hour chart.
Shiba Inu ($SHIB ) is trading at $0.0000115 today, June 20, as it continues a downtrend that has seen its value drop by more than 20% in just one month.
At press time, SHIB’s daily trading volume had fallen 38% to $78 million amid fading market interest. Meanwhile, a key on-chain metric formed a “death cross,” which typically warns that Shiba Inu price is about to enter a strong downtrend.
Shiba Inu Price Outlook Emerges as a “death cross.”
$SHIB price could see volatility rise as Market Value to Realized Value (MVRV) forms a “death cross.”
This bearish signal came after the 30-day MVRV fell below the 365-day MVRV, indicating that traders who bought SHIB in the past 30 days are losing more than traders who have held for a year.
According to data from Sentiment, traders who have held SHIB for 30 days are sitting 132% underwater, while those who bought in the past year have lost 112%.
This crossover may have a bearish effect in the short term as recent buyers start to capitulate. Additionally, when new buyers begin to make significant losses with high meme coins such as Shiba Inu, new capital inflows may dry up, increasing downside risk.
However, while this move may affect Shiba Inu's price performance in the near term, it may precede a price bounce. After the capitulation of short-term holders, this could give room for $SHIB 's price to return to the upside. Such sharp losses could also deter investors from selling until they break out.
Head and Shoulders Pattern Signals 14% Crash
A head and shoulders pattern has emerged on the four-hour Shiba Inu price chart, albeit with support at the neckline. This pattern usually highlights a bearish Shiba Inu price prediction that bears are about to take full control, and another crash is about to occur.
The shoulder height is 14%, suggesting that if Shiba Inu breaks below the $0.000011 support price, it could fall 14% to $0.0000097. Such declines can occur when recent buyers begin to capitulate, leading to increased sell-side pressure.
Technical indicators also remain bearish, with an RSI of 42 indicating bearish momentum governing price performance. The AO histogram bars are also bearish, and this negative momentum may strengthen as the bars shift into the red.
Whales are accumulating SHIB after buying 1.3 trillion tokens within 24 hours. If these large addresses collect the coins that recent buyers are selling, this can prevent a crash and help price recover.
Finally, Shiba Inu price is at a critical juncture as on-chain data shows a bearish trend, indicating the possibility of a bearish correction. Meanwhile, the lower time frame indicates bearish momentum is strengthening due to bearish formation and increased selling pressure.