Shiba Inu dumped: 4 trillion tokens flood exchanges – Will SHIB sink?

    Shiba Inu’s price dropped by 2.5% in the last 24 hours.
    Most metrics and indicators looked bearish on SHIB.

As a researcher with experience in analyzing cryptocurrency market trends and price movements, I’ve been closely monitoring Shiba Inu (SHIB) recently. Based on the data available, it appears that SHIB’s price has dropped by 2.5% in the last 24 hours, and most metrics and indicators look bearish.

Last week, the unpredictable price swings of Shiba Inu (SHIB) kept me on my toes as significant upward and downward trends emerged. The erratic market behavior could have instilled fear in fellow investors, leading to an increase in sell orders.

Does this mean SHIB is poised for a price correction soon? 

A look at Shiba Inu’s sell-off

The data from CoinMarketCap showed that the price of SHIB continued to rise, reaching a peak of $0.000029 on the 29th of May.

Despite the initial surge, Shibaswap token (SHIB) failed to maintain its upward trend and declined by 2.5% in the past 24 hours. At present, SHIB is priced at $0.00002536 and holds a market capitalization of more than $14.9 billion.

In the meantime, investors made up their minds to sell the memecoin.

Recently, well-known cryptocurrency analyst Ali drew attention to an intriguing occurrence on Twitter. According to his post, approximately 4 trillion SHIB tokens, equivalent to roughly $103 million, have been transferred to crypto exchanges within the past two weeks.

As a researcher studying the cryptocurrency market, I wanted to confirm if selling pressure was significant for Shiba Inu. To accomplish this, I examined its on-chain metrics using data from Santiment. Notably, SHIB‘s exchange outflows experienced a considerable increase last week.

As a crypto investor, I noticed a significant increase in the amount of the cryptocurrency circulating on exchanges. Meanwhile, there was a decrease in the supply held off the exchanges. This situation could potentially impact the market price depending on various factors such as demand and trading volumes.

The data indicated quite plainly that investors were increasing their holdings of this asset. Interestingly enough, even the larger investors or “whales” exhibited the same behavior and offloaded their SHIB. This was demonstrated through a slight decrease in the amount of SHIB held by top wallets during the past week.

Shiba Inu dumped: 4 trillion tokens flood exchanges – Will SHIB sink?

Will SHIB’s price drop?

Due to the common occurrence of steep price decreases following intense demand, AMBCrypto examined Shiba Inu’s market situation to determine if a similar trend was unfolding.

Based on Glassnode’s findings, the NVT ratio for SHIB has been on the rise once more after a previous decrease. An uptick in this metric suggests that the asset may be overvalued, potentially signaling an upcoming price drop.

Shiba Inu dumped: 4 trillion tokens flood exchanges – Will SHIB sink?

Some technical signs suggested pessimism towards the memecoin based on certain indicators. Specifically, its Chaikin Money Flow (CMF) showed a decrease.

As a researcher studying the market trends, I have observed that the Relative Strength Index (RSI) mirrored a comparable pattern to that of Shiba Inu (SHIB). These indicators provided signs suggesting an imminent price decline. Consequently, if this downward trend materializes, investors may see SHIB reach its support level of $0.000020 in the near future.

Shiba Inu dumped: 4 trillion tokens flood exchanges – Will SHIB sink?

Read Shiba Inu’s [SHIB] Price Prediction 2024-25 

Observing a contrast, Bone ShibaSwap’s token value remained steady despite SHIB experiencing a decrease.

Based on data from CoinMarketCap, the value of BONE has risen by over 1% within the past 24 hours. Currently, its price is at $0.6595.

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2024-06-01 12:07