Critical fall of Shiba Inu
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Hodlers may start cashing out Shiba Inu
The rate of the Shiba Inu project coin has been in free fall since the beginning of February, despite a number of fundamental positive news about the project. At the close of the first week of March, the meme token lost another 15%. This alarmed some investors, prompting them to start getting rid of SHIB.
According to the authoritative on-chain analytical resource Glassnode, the number of Shiba Inu coins placed on exchanges has shown a steady increase since mid-February. As of March 9, this figure has reached almost 1.1 trillion SHIB. As a rule, an increase in the number of coins on trading platforms, especially on the wallets of large market players, is considered a negative signal for the currency. Such an influx of tokens may indicate the intention of their owners to dump their holdings by selling them on the exchange.
Another cause for concern for SHIB hodlers may be the drop in transaction volumes. According to Santiment data , the number of transactions on the Shiba Inu network has dipped from 11.7 trillion SHIB as of February 2 to less than 240 billion as of March 9. A decrease in this on-chain indicator often entails a decrease in the price of the token. If developers and Shiba Inu community enthusiasts fail to stir up network activity and revive demand, the SHIB price could enter a bearish trend in the coming weeks.
SHIB price expects new losses
Gloomy prospects for SHIB are also outlined by the MVRV on-chain indicator , which calculates the ratio of the market and realized value of the coin. As you can see from the graph below, most crypto investors who bought SHIB in the last 30 days would have suffered a loss of 15% if they decided to sell their coins today. As the history of buying and selling trends shows, SHIB hodlers can continue to sell until the price drops to $0.00000955 (loss of about 22%). If this level does not hold, Shiba Inu may continue to fall to the next significant potential rebound level of $0.00000852 (loss of about 35%).
Meanwhile, in case of growth, the SHIB rate may test the $0.00001236 area, where many hodlers may want to sell coins with a profit of 7%. A sustained break of this level could trigger a rally towards $0.00001434 (equivalent to a 23% gain). Don’t forget to join us on our Telegram channel to keep up with the latest news and thank you for trusting us in guiding you through the most exciting events of the crypto world!
