Shiba Inu, the once top dog of the cryptocurrency market – the one dog which was even able to surpass Dogecoin, albeit briefly has become quite silent. Even with a slew of announcements on the way, its bark hasn’t been the loudest. Price action doesn’t seem to take note of over three million (ardent) followers on Twitter, and a hyped-up launch of its own metaverse that is on the way.
We are happy to welcome you to SHIB : The Metaverse. An immersive experience that is positioned to become a massive environment for the #ShibArmy to grow, share, and benefit together.https://t.co/pwcBSfUSND
— Shib (@Shibtoken) March 30, 2022
Nothing to see here
SHIB‘s chart can be described as boring at best. It has been stuck in a wide consolidation zone over the past three months and seems like it is in no mood to really wake up from its nap. Technically, there’s nothing much to infer except the crucial support and resistance zones that can make or break its future price trajectory.
SHIB/USDT | Source: Tradingview
$0.000034 would serve as a crucial resistance while $0.000019 would serve as support which has held strong in several earlier instances. Currently trading just shy of the 50 DMA, it looks like investors and traders do not have a lot of faith in this particular coin. It can also be noted that during the broader market recovery towards the end of March 2022, Shiba Inu wasn’t affected in any way.
Secondly, in line with the boring charts, on-chain volumes have been rather saddening too. Gone are the days when Shiba Inu used to be the talk of the town and the ‘moon’ used to be the only target it looked at. The moon seems like a lifetime away now.
On-chain volumes | Source: Santiment
Scary fundamentals
Network growth for Shiba Inu has also been sliding down, according to data from Santiment. This is despite the fact Shiba Inu Metaverse’s ‘Early Access Land Bid Event‘ is set to start on 9 April.
Network Growth | Source: Santiment
One of the most interesting (and scary) parts of Shiba Inu’s on-chain fundamentals is its NVT Ratio. Santiment calculated the NVT Ratio as the daily market capitalization to its daily circulation on the chain, but the logic remains pretty much the same. NVT ratio is essentially a cryptocurrency form of a PE ratio – evaluating its value by transaction volume.
Now, NVT Ratio for SHIB saw a stratospheric jump despite its humdrum prices. This basically means, despite prices holding on to a range, its (the denominator in the ratio) transaction volumes, and circulation dipped so massively that the NVT ratio value jumped nearly 430% at press time.
NVT Ratio | Source: Santiment
So overall it seems that the puppy’s bark is nowhere to be heard – despite the ‘army’ jumping about in excitement. The moon seems like an impossible dream and on-chain fundamentals continue to throw warnings signs all over the place. Keeping this coin at an arm’s length is probably the best way to go about it.
