Shiba Inu (SHIB) ended February after a 33% price drop. On-chain metrics project a similarly bearish outlook as investors move more coins onto exchanges in the coming weeks.
Shiba Inu Holders Want To Cash Out
The price of Shiba Inu has been falling steadily since the beginning of February. Another 15% fall recorded at the end of the first week of March has put investors in a selling position.
According to Glassnode, a leading blockchain data and intelligence provider, the amount of SHIB deposited on exchanges has steadily increased since mid-February.
As of March 9, the percentage of the token has risen to around 1.1 trillion SHIB on exchanges. The increasing number of tokens on known crypto exchange wallets can be considered as a negative sign. This suggests a possible boom in the amount of tokens available to sell.
Similarly, the recent drop in trading volume is another concern for SHIB holders.
From 11.7 trillion SHIB on 2 February to less than 240 billion traded on 9 March, the number of transactions on the Shiba Inu network has decreased significantly.
When the transaction volume on the blockchain decreases, the price of the native token often regresses. Unless Shiba Inu developers and partners can stimulate network activity and attract new demand, SHIB price will register a downward trend in the coming weeks.
SHIB Price Prediction: Ahead and Pitfalls
The value approach for SHIBs can be derived from the market-value-to-realized-value (MVRV). The chart below shows that most crypto investors who bought SHIB in the last 30 days would have suffered a 15% loss if they sold today.
Historical observation of buy and sell trends suggests that SHIB holders can continue selling until the price drops to $0.00000955, capping losses of approximately 22%. And if it doesn’t hold, it could drop to $0.00000852, which is the next important bounce point at the 35% loss line.
Conversely, a Shiba Inu uptrend could be tested at $0.00001236 where many holders could sell for 7% gains. A sustained break above could see SHIB rally towards the 23% profit line at $0.00001434.
BeInCrypto endeavors to provide accurate and up-to-date information, but shall not be responsible for any missing facts or incorrect information. You comply and understand that you should use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so do your research and make your own financial decisions.