Shiba Inu faces price troubles as on-chain signals turn bearish

Shiba Inu (CRYPTO:SHIB) is currently grappling with significant challenges as the broader meme coin market experiences a decline of nearly 8% over the past week.

While SHIB and DOGE (CRYPTO:DOGE) are not the worst performers, both have dropped by more than 7% on a weekly scale.

Over the last 30 days, SHIB's struggles have intensified, with its price plummeting by almost 22%, signaling a concerning trend for investors.

Several on-chain and exchange signals, as aggregated by IntoTheBlock, indicate a predominantly bearish sentiment for SHIB, with five out of six signals pointing towards potential price difficulties.

One key indicator, the Net Network Growth, which measures the underlying network's expansion, has decreased by 0.19, suggesting weakening network activity.

This decline is further compounded by the drop in the percentage of "in the money" holders, or those who are currently profiting from their SHIB investments.

This metric has fallen by 1% in the last day, leaving only 45% of SHIB investors in profit.

Another troubling sign is the concentration metric, which has remained unchanged.

This stagnation indicates that large investors, or whales, are neither accumulating nor offloading SHIB tokens, which is a bearish signal for future price movement.

Additionally, the number of large transactions—a measure of whale activity and interest—has decreased by 11% in the past day, pointing to reduced engagement from significant market participants.

These indicators collectively paint a concerning picture for SHIB's near-term outlook.

The meme coin is facing mounting pressure from declining market sentiment and reduced on-chain activity.

The overall sentiment remains bearish, with investors keeping a close eye on these signals to assess the likelihood of further price declines in the coming days.