- About 2.6 trillion SHIB tokens were sent into exchanges on the 1st of June
Network Growth fell, suggesting that the price may face another correction
As a seasoned crypto investor with a few battle scars from past market corrections, I’ve learned to read between the lines when it comes to on-chain metrics and price movements. The recent developments with Shiba Inu (SHIB) have raised some red flags, and I can’t help but feel a sense of unease in my crypto portfolio.
Shiba Inu (SHIB) kicked off June in an unexpected manner, as noted by AMBCrypto. Based on our assessment using Glassnode, there was a noticeable shift in SHIB’s Exchange Net Position, which could potentially impact holders adversely.
The exchange net position change for the metric stood at approximately 2.6 trillion units as of June 1st. This figure signifies the fluctuations in the amount of tokens stored in supply wallets.
As a crypto investor, when I observe a positive metric indicating a large number of tokens being transferred to exchanges, I often anticipate increased selling pressure. This trend can potentially lead to downward price movements.
No boost, only burst
Instead of adding to the exchanges, a negative number implies that more tokens were taken out than put in during the transaction. Subsequently, the token’s price may rise following this occurrence.
From March to mid-May, the value of Shiba Inu underwent a decrease. It was solely during the month of March that the coin experienced price growth due to inflow.
In that specific timeframe, SHIB‘s value reached a peak of $0.000035. However, the months of April and May did not bring much success to the token as its price mostly hovered around that level.
Due to the rising availability of Shiba Inu tokens in the market, it’s possible that their value may decrease as a result.
At the current moment, SHIB‘s value stands at $0.000024, marking a 6.49% downturn in the previous 90 days. However, before jumping to the conclusion that SHIB is headed for another drop, I, as an analyst, delved deeper into its ecosystem for insights.
Demand continues to wane
One method to express this is: The metric Shiba Inu’s Network Expansion was assessed. Network Expansion represents the count of fresh wallets engaging in transactions using the token for the very first time.
As a researcher investigating network growth, I’ve observed that this metric is commonly viewed as an indicator of acceptance or popularity for a given network. However, based on data from Santiment, the network growth rate has declined since its peak on May 29th.
Based on this trend, it strongly supports the belief that Shiba Inu’s price might take a significant dip. If so, its value could potentially drop down to $0.000020.
If the demand for SHIB fails to impress, a significant price increase, or bounce, is unlikely to occur. But if there’s an extraordinary surge in demand, the token could potentially reach a value of $0.000030.
As a crypto investor, I’d also pay attention to the one-day circulation data provided by AMBCrypto. A rise in this metric suggests that more people are actively using and trading the tokens in the marketplace, which can be an encouraging sign for potential investors like myself.
On the other hand, a decline suggests a decrease in the number of tokens used.
Realistic or not, here’s SHIB’s market cap in DOGE terms
At present, the circulating supply of Shiba Inu within a 24-hour period amounted to approximately 965.89 billion tokens. This figure suggests that Shiba Inu wasn’t among the popular meme coins being heavily promoted in the crypto market during that time.
In other words, Shiba Inu (SHIB) may not draw significant investment due to its lower liquidity compared to other popular meme coins. This could lead to unfavorable price trends throughout the month if market conditions don’t improve.
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2024-06-03 09:11