The future of SHIB’s price has been caught in a whirlwind of uncertainty in recent times, even as the updates continue to spring regarding the Shiba Inu community. Crypto exchanges witnessed a recent inflow of SHIB tokens this week, indicating a significant price action could be on the horizon for the popular meme coin.
Shiba Inu Bearish Sentiment
All data points to Shiba Inu in a current bearish sentiment, and the recent inflows into crypto exchanges aren’t helping matters. According to IntoTheBlock, indicators and on-chain signals point to a bearish sentiment, with only 8% of holders making money at a current price.
Data compiled by on-chain analytics platform CryptoQuant has shown a similar market behavior as investors seem to be moving their holdings to exchanges for selloffs. A metric that follows the amount of SHIB inflows to exchanges has revealed an increase in the past few days.
The inflows began particularly early this week on October 8th as 1.3 trillion SHIB tokens made their way into exchanges. Shiba Inu then reacted to this selloff, as the price fell from $0.00000719 to $0.00000693 the next day.
Evaluating What This Means For Price Action
The exchange inflow has since continued, and the total SHIB exchange reserve is currently at 169.305 trillion. Another metric by IntoTheBlock has also shown that the net flow of addresses holding more than 0.1% of the circulating supply is at -18.54% in a 7-day change and -80.22% in a 30-day change. The negative percentage indicates there are more outflows from whale accounts than inflows.
Considering the current bearish sentiment, a continued influx into crypto exchanges could mean some big players are positioning themselves to unload their SHIB holdings. If they start selling aggressively, it may flood the market and drive the price down.
Although Shiba Inu’s Shibarium celebrated a new milestone of a million blocks yesterday, this hasn’t reflected in a bullish momentum for SHIB. This has prompted some members of the Shiba Inu community to relay their sentiments and frustration.
In contrast, the meme token recently broke through a key support of $0.0000072 and is down by 5.34% in a 7-day timeframe. From a technical viewpoint, the breakdown could continue unless bulls are able to recover momentum at the $0.0000068 support.
Lucie, a senior member of the development team for Shiba Inu, issued a rallying cry to the Shiba Inu community, imploring them to maintain their resolve in the face of this waning momentum. “Let’s keep our heads held high, supporting and uplifting one another,” Lucie said in a tweet.
How are all my fellow holders doing? ????
I wanted to let you know that I understand what you’re going through.
This crypto bear market has been a wild rollercoaster ride, and it’s been tough to keep up with all the chilling news from around the world.
But fear… pic.twitter.com/Q5U6Ol7wk0
— ???????????????????? | ✨Shibarium✨ (@LucieSHIB) October 10, 2023
SHIB price shows high volatility | Source: SHIBUSD on Tradingview.com
Featured image from Shutterstock, chart from Tradingview.com
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Author: Scott Matherson