2023-10-11 23:00 |
At $0.000007, Shiba Inu (SHIB) price has now declined over 50% from its 2023 peak of $0.000015 registered in February. Recent on-chain movements provide insights into the SHIB price action in the days ahead.
Since crossing the $0.00001 mark in August, Shiba Inu’s price performance has been underwhelming. Vital on-chain indicators point toward a potential third consecutive losing month for SHIB holders.
Investors Transfer 1 Trillion SHIB into Crypto ExchangesThe media buzz surrounding the memecoin sector has waned in recent weeks as investors switch focus to burgeoning asset classes such as Real World Assets (RWA) and SocialFi.
After weeks of declining prices, Shiba Inu holders are now bracing for major sell-action. Investors moved 1 trillion SHIB tokens into crypto exchanges this week, according to on-chain data compiled by CryptoQuant.
The inflows, which began on October 8, have now brought the total SHIB Exchange Supply to a 50-day peak of 169 trillion.
Shiba Inu (SHIB) Exchange Reserves vs. Price. Source: CryptoQuantExchange Supply provides a real-time snapshot of the total deposits that investors currently hold in exchange-hosted wallets. Typically, when exchange supply increases during a prolonged bearish price downtrend, it signals that holders have grown dysphoric and are now looking to exit their positions.
With SHIB exchange supply nearing a two-month peak, the prices could face further downward pressure.
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Bearish Traders Have Siezed Control in the Spot MarketsAggregate data from the Order Books of 16 recognized exchanges confirms that sell orders now dominate the SHIB spot markets. This confirms the narrative the recent exchange supply spikes could intensify selling pressure.
As depicted below, the bearish traders have placed active orders to sell 2.5 trillion SHIB within the 10% boundaries of the current Shiba Inu prices. This is considerably higher than the corresponding 2.14 trillion SHIB purchase orders.
Shiba Inu (SHIB) Aggregate Exchange On-chain Market Depth | Source: IntoTheBlockThe Exchange On-chain Market Depth chart depicts the number of active SHIB buy/sell orders placed across recognized cryptocurrency exchanges.
As seen above, the sell orders for Shiba Inu have now outpaced demand by more than 400 billion SHIB. This suggests that bearish traders are now in control of the market.
To fill their orders quickly, the sellers may have to compete by lowering prices.
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SHIB Price Prediction: Further Retracement Toward $0.000005Based on the recent on-chain events, Shiba Inu will likely experience a further price downswing below $0.000005 in the weeks ahead.
The Global In/Out of the Money (GIOM) chart, which depicts the entry price distribution of current SHIB holders, also validates this bearish prediction. It shows that Shiba Inu losing vital support at $0.000006 could catalyze historic losses.
As seen below, 52,9200 addresses purchased 19.37 trillion SHIB at a maximum price of $0.000007. Considering this is the last major support cluster, they will likely make frantic efforts to HODL.
But if the exchange inflows keep increasing, Shiba Inu’s price could edge closer to $0.000004
Shiba Inu (SHIB) Price Prediction | Global In/Out of the Money (GIOM) data | Source: IntoTheBlockAlternatively, the bulls could invalidate that bearish prediction if Shiba Inu’s price can reclaim $0.00001. But that seems far fetch, as 153,700 addresses had bought 68.5 trillion SHIB at the average price of $0.000008. If they sell, SHIB’s price will likely retrace.
But if that resistance level caves, Shiba Inu’s price could rally toward the $0.00001 range.
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The post What Next For Shiba Inu Price as 1 Trillion SHIB Tokens Hit Crypto Exchanges? appeared first on BeInCrypto.
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