Cryptocurrencies remained downbeat on Monday as Bitcoin stayed stuck within the $97K region.
While altcoins contemplate their next moves, Shiba Inu (SHIB) displays weakness amid faded demand.
Reduced interest from new traders and the emerging death cross pattern on SHIB’s 1D chart positions the alt for extended declines.
Buyer resurgence is essential for Shiba Inu to thwart a potential 22% price dip to the $0.000013 foothold.
SHIB address activity at yearly lows
Santiment’s data shows a significant plunge in new addresses interacting with Shiba Inu daily.
Only 1,814 new wallets joined the ecosystem yesterday.
That marked an over 60% slump from figures recorded on January 19.
That highlights a dwindled demand for SHIB after meme assets saw significant buying pressure early in 2025.
Factors such as industry experts criticizing specific meme asset categories saw many refraining from themed cryptocurrencies.
Besides declined interest from new players, SHIB’s daily active addresses have plummeted.
Around 9,928 wallets transacted the alt on January 19.
However, the number had dipped by over 50% to 4,665 as of February 10.
A dip in new demand and daily active wallets confirms reduced participation and interest in Shiba Inu.
Such trends catalyze surged selling sentiments and low trading volumes, triggering bearish price performance.
Thus, SHIB remains vulnerable to volatility and price declines in the near term.
The looming death cross on the 1D timeframe supports this narrative.
Shiba Inu on the verge of a death cross
Technical indicators confirm SHIB’s dire state at current price levels.
The 50d Exponential Moving Average is crossing below the 200d Exponential Moving Average on the 1D chart.
This setup, known in the market as a death cross, might extend Shiba Inu’s downward performance.
The altcoin could slide to $0.00001450 and open the path toward the support region at $0.000016.
Weakness at this mark could support dips to $0.000013.
That would mean a 21.77% plunge from the current price of $0.00001583.
Nevertheless, bulls have the chance to reverse Shiba Inu’s bearish structure.
Enhanced sentiments will likely renew interest for existing SHIB players and attract new investors.
That could help the meme token avoid the impending death cross.
A decisive move past the resistance at $0.000018 and $0.000020 will turn the alt’s structure bullish in the near term.
Nevertheless, the prevailing outlook suggests that the downward path has fewer hurdles for SHIB.
Shiba Inu prices should hold reclaim levels above 50 and 200-d averages to avoid significant dips in the coming days.
Meanwhile, broad market sentiments are vital in shaping the meme token’s near-term trajectory.
The global cryptocurrency market cap saw a modest 0.45% surge in the past day to $3.18 trillion.
The fear and greed index displays “Fear” at 35, indicating bear dominance.
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