Shiba Inu (SHIB) key on-chain indicators form a death cross, which may indicate a short-term decline.

According to Gate News bot and CoinGape, on June 20, the trading price of Shiba Inu (SHIB) was $0.0000115, continuing its decline of over 20% in just one month. As of the time of publication, due to weakened market interest, the daily trading volume of SHIB has decreased by 38% to $78 million. Meanwhile, a key on-chain indicator has formed a "death cross," which often signals that the price of SHIB is about to enter a strong downward trend.

Due to the "death cross" appearing in the ratio of market value to actual value (MVRV), the price volatility of SHIB may significantly increase. This bearish signal emerged after the 30-day MVRV ratio fell below the 365-day MVRV ratio, indicating that traders who bought SHIB in the past 30 days have suffered greater losses than those who have held for a year.

According to Santiment's data, traders who held SHIB for 30 days lost 132%, while traders who bought in the past year lost 112%.

(Image source: Santiment)

Due to recent selling by buyers, this crossover may have a bearish impact in the short term. Additionally, when new buyers begin to suffer significant losses on popular meme coins like Shiba Inu, new capital inflow may dry up, increasing the downside risk.

It is worth mentioning that although this move may affect the price performance of Shiba Inu in the short term, it also signifies a potential rebound in the future. After short-term holders complete their sell-off, there may be room for a rebound in the price of SHIB.