2023-3-16 18:05 |
Shiba Inu (SHIB) ended February in the red after a 33% price decline. On-chain metrics project a similar bearish outlook as investors move more tokens onto exchanges in the coming weeks.
Shiba Inu Holders May Want to Cash OutShiba Inu price has been in free fall since early February. Another 15% decline recorded at the close of the first week of March has spooked investors into positioning for sell action.
According to prominent blockchain data and intelligence provider, Glassnode, the volume of SHIB deposited on exchanges has increased persistently since mid-February.
The percentage of tokens on exchanges has increased by nearly 1.1 trillion SHIB as of March 9. The rising number of tokens on known crypto exchange wallets can be considered a negative signal. It suggests a potential surge in the volume of tokens available to sell.
Shiba Inu (SHIB) Balance on Exchanges. Source: GlasssnodeLikewise, the recent decline in transaction volumes is another concern for SHIB holders.
From 11.7 trillion SHIB traded on February 2 to less than 240 billion on March 9, the number of transactions on the Shiba Inu network has reduced significantly.
Shiba Inu (SHIB) Trasaction Volume. Source: SantimentWhen transaction volumes decline on a blockchain, the price of the native token often retraces. Unless Shiba Inu developers and partners can stir up network activity and attract new demand, SHIB price will likely enter a bearish trend in the coming weeks.
SHIB Price Prediction: Further Losses AheadThe price outlook for SHIB can be gleaned from the Market-Value-to-Realized-Value (MVRV). The chart below shows that most crypto investors who bought the SHIB in the last 30 days would incur a 15% loss if they were to sell today.
Historical observation of buy and sell trends show that SHIB holders may continue selling until the price drops to $0.00000955, around the 22% loss range. And if this does not hold, it may slip further down to $0.00000852, the next significant rebound point at the 35% loss line.
Shiba Inu (SHIB) MVRV. Source: SantimentConversely, a Shiba Inu uptrend will likely be tested at $0.00001236, where many holders may sell at a 7% profit. A sustained break above that could see SHIB rally toward the 23% profit line at $0.00001434.
The post Shiba Inu (SHIB) Price Downtrend Expected to Continue appeared first on BeInCrypto.
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