SHIB dips 3% amid Buyer Hesitance

Shiba Inu price experienced a 3% pullback on January 12 as buyers remained hesitant. With market demand flat-lining, can SHIB rebound above $0.000025 ?

3% Pullback Limits SHIB Price Recovery

Shiba Inu (SHIB) experienced a 3% decline in the last 24 hours, trading at $0.000021 on January 12, as buyer hesitation and flat market demand weighed heavily on its rebound potential.

Despite the broader crypto market showing signs of recovery, recent SHIB price movement suggests that sellers still maintain a firm grip on momentum.

Between January 5 and January 9, SHIB’s price dropped by 10.4%, sliding from $0.0000235 to $0.000021 during a period marked by widespread market sell-offs.

However, following the cooling of bearish pressures across the crypto sector, SHIB has managed to stabilize over the past two days. Despite the recent pullback, it still trades above its January 9 low of $0.0000208.

This tentative recovery indicates a possible shift in market sentiment, though the absence of a significant uptick in buying pressure underscores lingering caution among investors.

Compared to stronger rebounds in other altcoins, such as SUI and Cardano (ADA), SHIB’s upward momentum remains constrained, signaling that crypto traders remain hesitant to lean into memecoins within the current uncertain market phase.

New Adoption Rate plunges as SHIB struggles to find buyers

Shiba Inu’s latest 3% price reversal hints at an active bearish catalyst. A closer look at recent on-chain activity shows that the Shiba Inu blockchain network has struggled to attract fresh demand, despite mild improvement in the broader crypto market sentiment.

IntoTheBlock’s New Adoption Rate chart below further emphasizes this narrative. This metric, which tracks the percentage of wallet addresses conducting their first-ever transactions on the Shiba Inu blockchain, serves as a critical indicator of new-user acquisition.

On January 8, Shiba Inu’s New Adoption Rate peaked at 40%, signifying healthy growth in new network participants.

However, as bearish sentiment dominated the broader market, this figure began to decline sharply. By January 11, the New Adoption Rate had dropped to just 27.71%, a staggering 12.29% decline in only three days.

This decline in SHIB new user transitions reflects that crypto investors remain hesitant to lean into the memecoin sector as market sentiment hangs in the balance.

Shiba Inu Price Forecast: Weak volumes could prevent $0.000025 breakout

Shiba Inu price prediction reflects indecisiveness, as SHIB trades near $0.00002169, with technical indicators suggesting a balanced outlook.

The daily Bollinger Bands (BB) constriction signals reduced volatility, with SHIB testing the middle band ($0.00002232). A sustained move above this level could target $0.00002456, the upper band.

However, trading volume remains weak at 799.93 billion, as shown in the volume delta chart, raising concerns about bullish momentum.

On the bullish side, a breakout above $0.00002232 could attract fresh buyers, potentially driving SHIB toward $0.00002500. This scenario would require a surge in buying volume and a convincing close above resistance levels. Such a move may coincide with improving market sentiment, further boosting SHIB’s upside potential.

Conversely, the bearish outlook hinges on SHIB’s inability to break $0.00002232. A decline below $0.00002009, the lower Bollinger Band, could signal increased selling pressure, potentially revisiting $0.00001853, the December low.

Weak trading volume supports this scenario, as diminishing demand threatens to cap short-term gains. The next few sessions are pivotal for SHIB’s directional bias.

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Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.