SHIB long-term holders are selling, will the price fall further?

The Shiba Inu is struggling to come out of his recent slump.

On-chain data shows how slowing network growth and selling pressure from long-term holders could slow the SHIB price resurgence.

shiba inu network not growing

Shiba Inu holders have endured sideways movement by the popular meme coin in recent weeks. The recent decline in network traction has cooled early signs of a potential price revival.

According to Glassnode, the number of new network participants joining the Shiba Inu network has decreased since the beginning of February 2023.

In the chart below, Glassnode reports that new wallet addresses created on the Shiba Inu network dropped from 4,575 at the end of February 4th to 1,696 addresses at the end of March 21st.

When the number of new addresses on a blockchain network declines, it may reflect declining interest in its core service offering. Unless this trend reverses, SHIB may struggle to find new demand in the coming weeks.

Moreover, the declining balance of long term holders also validates the bearish outlook for SHIB. As reported by Sentiment, the average coin age of SHIB tokens in circulation has dropped sharply.

In the sentiment chart below, the SHIB Mean Coin Edge (90d) has fallen from 44.63 on 2 February to 29.06 on 22 March.

As mentioned, the Mean Coin Age (90d) data shows how many recently traded coins stayed at their current addresses. A sharp decline usually indicates a selling trend among long-term holders.

Increasing selling pressure from long-term Shiba Inu holders could cause panic among crypto investors. This may lead to further fall in prices.

Is $0.000008 The Next Price Stop For The Shiba Inu?

Global In/Out of the Money (GIOMAP) data compiled by blockchain forensics firm IntoTheBlock indicates that SHIB could soon drop to $0.000008.

After failing to break out of the $0.000011 resistance area during the past week, SHIB holders can now expect a drop towards $0.000008, the minimum price that 200,000 addresses have paid for approximately 47 trillion SHIB tokens.

Failure to hold this level could see SHIB drop further to $0.000006, where another 154,000 addresses that have bought 53 trillion tokens could reduce bearish.

Nevertheless, if SHIB breaks out of its current resistance zone at $0.000012, the bulls may take charge again. Where 138,000 addresses initially bought approximately 93 trillion tokens.

If this resistance breaks, SHIB could move higher towards $0.000012 for the long term. Wherein 100,000 addresses have bought a combined 466 trillion SHIB tokens.