Shiba Inu’s availability on exchanges has surged over the last 48 hours, reaching its highest level in six months as large wallets sell off the meme coin to recoup losses and make profits.
Data from on-chain sources also indicates that coins held for extended periods are now in motion, suggesting that some long-term holders are feeling nervous, hinting at a possible bearish trend on the horizon.
Despite doubling in value since the beginning of the year, Shiba Inu may be on the verge of a significant correction based on recent market trends and on-chain data, as some of its major supporters gear up for a potential sell-off.
Currently trading at $0.00002182, Shiba Inu has experienced a 1.3% dip in the last 24 hours, with a market cap of $12.9 billion. However, its trading volume has surged by 30% to reach $752 million in the same period, surpassing other popular projects like Cardano and Chainlink.
Since January, Shiba Inu has seen a 111% increase in value, outperforming many other cryptocurrencies such as Bitcoin and Ethereum. Even its main meme coin rival, DOGE, has fallen short with a 56% gain, compared to the impressive 900% and 1600% gains of meme coins like PEPE and WIF.
Nevertheless, the future looks uncertain for Shiba Inu. Recent data from Santiment reveals a sharp increase in SHIB supply on exchanges this week, reaching a six-month high. The rising influx of tokens onto exchanges is typically viewed as a bearish sign, indicating an increase in selling pressure that could drive down prices.
Furthermore, the movement of coins by long-term holders is also causing concern. Santiment’s data shows a spike in its age-consumed metric, suggesting that coins held for an extended period are now being moved. This could indicate a surge in selling activity among long-term holders, adding to the downward pressure on the token’s price.
The recent drop in Shiba Inu’s value, which has fallen below its 100-day exponential moving average (EMA), has prompted fears among holders. The next crucial support level is at $0.000019, which could serve as a potential rebound point if held. However, if this level is breached, Shiba Inu may hit new lows in the coming days.
On a more positive note, the resurgence of meme coins, exemplified by the success of Iggy Azalea’s MOTHER, could potentially benefit Shiba Inu. The controversial rise of MOTHER has sparked debates within the crypto community, with some criticizing Azalea for her treatment of Vitalik Buterin.