- Volume increased, while exchange inflows were double the outflows
If SHIB rebounds, it could face resistance at $0.000025
As an experienced analyst, I’ve seen my fair share of market trends and price movements. Based on the current data, Shiba Inu (SHIB) might experience another drawdown despite a significant increase in volume. The high exchange inflows relative to outflows suggest that sellers are more active than buyers, which could lead to a further drop in price.
As a crypto investor, I’ve noticed that Shiba Inu‘s [SHIB] price may be poised for another dip, despite a significant increase in trading volume of around 103%. Currently, SHIB is priced at $0.000024 according to the charts. Unfortunately, the altcoin has experienced a decline of over 4.8% within the past 24 hours.
As an analyst, I’ve observed a significant decrease in price alongside an uptick in trading volume. This combination suggests that sellers have exerted considerable pressure on the market. However, it’s essential to note that AMBCrypto identified additional metrics hinting at a possible further downturn in prices.
Is SHIB overvalued for now?
As a crypto investor, I would start by examining the exchange activity related to Shiba Inu. At the moment, according to Santiment’s latest data, there have been significant outflows from the Shiba Inu network, with approximately 510.97 million tokens leaving exchanges. This data signifies the number of tokens being transferred off exchanges, which could potentially indicate that holders are moving their coins to personal wallets for various reasons, such as long-term holding or anticipation of a price increase.
Typically, large exchange outflows suggest that token holders are not planning to sell in the near future. In contrast, exchange inflows amounting to 1.69 billion were significantly higher than usual. Unlike outflows, which represent tokens leaving exchanges, inflows refer to tokens being transferred into them.
Based on the discrepancy observed, it can be inferred that a greater number of SHIB holders have chosen to sell their tokens. Should this trend persist, there is a potential for the token price to dip down to $0.000020.
Despite the belief that SHIB‘s price may surge following large-scale purchases by whales, it’s possible that the coin could experience a decline before any potential uptrend.
Furthermore, AMBCrypto examined the Network Value to Transactions (NVT) ratio and found that it was rising once more.
If the NVT (Network Value to Transactions) ratio declines, it indicates that the rate of transactions within a project is outpacing its market capitalization more significantly. This is an indicator of optimistic investor attitudes and potentially rising prices.
At present, the Shiba Inu network’s NVT ratio stood at 91.56. This figure suggested a rather elevated network value, implying a bearish outlook among investors.
Based on the chart, an increase in the ratio seems to have resulted in a drop in SHIB‘s price. Therefore, this trend may indicate the accuracy of the predicted price decrease.
A sell wall puts the token in trouble
Should buying demand increase as indicated by the price charts, Shiba Inu (SHIB) could potentially reach a value of $0.000025. An analysis of the In/Out of the Money indicator unveiled that approximately 31,940 wallets have acquired a combined total of 11.84 trillion tokens at prices ranging from $0.000024 to $0.000025.
In simpler terms, this vast collection of address locations was experiencing financial losses. Consequently, this area might function as a barrier for the token because of the considerable number of sell orders on the blockchain.
A rise in SHIB‘s price may not trigger a sustained rally. On the contrary, some investors holding large quantities of the token could sell off their holdings, leading to a potential price decrease due to extensive profit-taking.
Based on the signs pointed out, Shib may potentially drop down to $0.000022. In a extremely pessimistic scenario, its value could even fall as low as $0.000020.
Realistic or not, here’s SHIB’s market cap in DOGE terms
Traders must keep an eye on the larger market trends as well. For instance, if Bitcoin‘s [BTC] price recovers, the bearish forecast for Shiba Inu [SHIB] may no longer hold true.
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2024-06-09 07:03