Memecoin Shiba Inu's Anticipated Price Movements – Observations Following Loss of Support
A Brisk Look at Shiba Inu (SHIB): Quiet Consolidation or A Sneaky Buying Opportunity?* Share* Tweet
Shiba Inu (SHIB), a popular memecoin, is currently treading within a bipartite two-month-old range formation. Its recent price action indicates an escalating reign of bears.
Recent reports have shed light on heavy sell pressure from certain whales.
Source
The currency slipped below the mid-range level at $0.0000129. This inability to sustain the support signifies a probable fall towards the range lows instead of a surge towards the highs.
The cryptocurrency's on-chain metrics, in general, suggest a lack of bullish vigor.
Parsing Market Attitudes and Shiba Inu Holder Behavior
Market Sentiment Insights [4]
- Sentiment Analysis: Although whales have been aggressively selling Shiba Inu, the report shows a steady drop in exchange net position change since January. This indicates reduced sell pressure and an increase in accumulation as more tokens leave exchanges.
- Fear & Greed Index [4]: Despite bearish tendencies, the Fear & Greed Index for SHIB stands at 64, categorizing the index as "Greed," showcasing a leaning towards optimism due to potential future gains.
On-Chain Metrics [4, 3]
- Exchange Outflows: High coin flows to exchanges in December, as seen during the peak of the rally, have tapered off, suggesting reduced sell pressure.
- Funding Rate: The past few days have witnessed a surge in bearish sentiments, with the funding rate dipping below zero. This denotes an increase in bearish convictions.
- Active Addresses: The active addresses metric observed a surge in early May, but activity has since dwindled, with consistently high activity indicating potential demand. Sporadic spikes in activity, however, may signal selling opportunities.
- Mean Coin Age: The mean coin age (MCA) has lacked a robust uptrend over the past month, unlike the January-March stretch. During this period, the steady increase in MCA signified network-wide accumulation.
- Dormant Circulation: The dormant circulation has seen occasional spikes, indicating token movement and small waves of selling on-chain. The 30-day MVRV is back in negative territory, which could signal the end of selling pressure from short-term holders, potentially facilitating consolidation and accumulation.
Though we don't have direct access to the current data from Glassnode and Santiment, these insights offer a glimpse into the potential trends within the Shiba Inu ecosystem.
[1] Source: Glassnode[2] Source: Santiment[3] Source: Bitcoinist[4] Source: CoinMarketCap
- The Shiba Inu (SHIB) cryptocurrency is currently in a range formation, with bearish price action prevailing.
- Whales have been heavily selling Shiba Inu tokens, but exchange net position change has decreased since January, indicating increased accumulation.
- Despite these bearish tendencies, the Fear & Greed Index for SHIB remains at 64, indicating a lean towards optimism due to potential future gains.
- High coin flows to exchanges, seen during the peak of the SHIB rally, have reduced, suggesting a decline in sell pressure.
- The funding rate has surged bearish sentiments, with the rate dipping below zero, indicating an increase in bearish convictions.
- The active addresses metric experienced a surge in early May but has since decreased, with consistently high activity potentially signaling demand.
- The Shiba Inu ecosystem's dormant circulation has shown occasional spikes, indicating on-chain selling, but the 30-day MVRV is back in negative territory, possibly signaling the end of selling pressure from short-term holders and potential consolidation.
