The market of Shiba Inu (SHIB) is facing a period of turbulence with several threats to delivering the meme coin down. According to data from IntoTheBlock, the massive amount of 65 trillion SHIB tokens, purchased between $0.000025 and $0.000027, may result at risk of being sold. These investors have been risking a price correction, which may provoke panic and offload their holdings, which can drive the price down even further.
The high trading volume also paints a worrisome picture. Almost 2 trillion SHIB tokens were moved in the last 24 hours, and according to crypto analyst Ali Martinez, over 4 trillion SHIB tokens were transferred to exchanges within the last two weeks. Historically, such movements often precede sell-offs as investors prepare to exit the market.
While whale activity appears to be normal, the overall sentiment is pessimistic, echoing the broader crypto market downturn after the Ethereum price correction. Investors looking for a safer harbor are opting out of riskier assets such as shiba, which can be seen in the stagnating prices despite high trading volumes.
SHIB’s network metrics also show a decline. New and active addresses are dropping, indicating a shrinking investor pool. This absence of new investors and decreased participation from current holders form a bleak prognosis for SHIB’s future.
Token’s current price of $0.00002510 is precariously positioned between two moving averages. The 50-day EMA is currently at $0.00002309, which serves as an immediate support level, while the 200-day EMA is at $0.00001940, which provides stronger support. These levels have the potential to prevent further decline or even initiate a bounce-back.
SHIB Faces Crucial Days Ahead
The Relative Strength Index (RSI) is 47, suggesting a neutral market with little buying or selling pressure. However, the recent increase in trading volume (up 50.53% to $431.62M) could be a double-edged sword. While it indicates increased activity, it also indicates a seller-led market, potentially pushing prices further down.
Whether the token army can endure the storm and hold onto their tokens, or whether the market will be overwhelmed by selling pressures, remains to be seen. Closely monitoring on-chain activity, market sentiment, and technical indicators will make the future path of this popular meme coin more apparent.
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