Shiba Inu (SHIB) Price Declines as Investors Transfer Tokens to Exchanges
The price of Shiba Inu (SHIB) has dropped over 50% from its peak in February, currently sitting at $0.000007. Recent on-chain movements suggest that SHIB holders may face another month of losses. After the decline of the memecoin sector, investors have shifted their focus to other asset classes like Real World Assets (RWA) and SocialFi.
On-chain data from CryptoQuant reveals that investors have transferred 1 trillion SHIB tokens into crypto exchanges this week. This influx has brought the total SHIB Exchange Supply to a 50-day high of 169 trillion, indicating that holders may be looking to exit their positions.
Bearish Traders Dominate Spot Markets
The Order Books of 16 recognized exchanges show that sell orders now outweigh buy orders in the SHIB spot markets. This suggests that the recent increase in exchange supply could intensify selling pressure.
According to IntoTheBlock’s Exchange On-chain Market Depth chart, there are currently more active sell orders for SHIB than buy orders by over 400 billion tokens. This indicates that bearish traders are in control and may need to lower prices to fill their orders quickly.
Further Retracement Expected for SHIB Price
Based on recent on-chain events, it is likely that Shiba Inu’s price will continue to decline below $0.000005 in the coming weeks. The Global In/Out of the Money (GIOM) chart confirms this bearish prediction, showing that losing support at $0.000006 could lead to significant losses.
If exchange inflows continue to increase, SHIB’s price could approach $0.000004. However, if the price manages to reclaim $0.00001, it could invalidate the bearish prediction and rally towards that range.
Hot Take: Shiba Inu (SHIB) Faces Bearish Outlook as Investors Sell Tokens
With SHIB’s price declining and investors transferring tokens to exchanges, the outlook for Shiba Inu remains bearish. The increase in exchange supply suggests that holders are looking to exit their positions, putting downward pressure on prices. Additionally, bearish traders dominate the spot markets, further intensifying selling pressure.
Based on recent on-chain events and the Global In/Out of the Money chart, it is likely that SHIB’s price will continue to decline in the coming weeks. However, if the price manages to reclaim key resistance levels, a bullish rally could occur. Nevertheless, caution should be exercised when considering investments in SHIB.
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