On-chain metrics project similar bearish outlook as investors move more Shiba Inu onto exchanges in coming weeks
Shiba Inu (SHIB) experienced a 33% price decrease in February, resulting in a loss. Investors have begun preparing to sell after another 15% loss recorded at the end of the first week of March worried them. At the time of writing, SHIB is changing hands at $0.00001031.
XRP/USD 4-hour chart | Source: TradingView
Since mid-February, the amount of SHIB placed on exchanges has steadily climbed, according to Glassnode. As of March 9, the proportion of tokens on exchanges has climbed by around 1.1 trillion SHIB.
SHIB Balance on Exchanges | Source: Glasssnode
A warning indication can be the growing number of tokens on well-known crypto exchange wallets. That means that the number of available tokens for sale may increase.
For SHIB investors, the recent fall in transaction volumes is another worry. The amount of SHIB transacted on the Shiba Inu network has decreased dramatically from 11.7 trillion on February 2 to less than 240 billion on March 9.
SHIB Trasaction Volume | Source: Santiment
The price of the native token frequently retraces as blockchain transaction volumes drop. If Shiba Inu developers and partners cannot increase network activity and draw in new demand, the price of SHIB will probably trend downward in the upcoming weeks.
SHIB holders may continue selling until the price drops to $0.00000955, or around the 22% loss range, according to historical purchase and sell tendencies. More declines might occur to $0.00000852, the following key comeback mark at the 35% loss line, if this does not hold.
Shiba Inu (SHIB) MVRV | Source: Santiment
On the other hand, a Shiba Inu upswing will probably be challenged at $0.00001236, where many holders may choose to sell for a 7% profit. If they maintain their break above there, SHIB may advance toward the 23% profit line at $0.00001434.
The cryptocurrency market has recently gone through a period of instability, with many assets seeing large price swings. Although Shiba Inu’s recent recovery may be encouraging for its investors, it’s crucial to remember that cryptocurrency markets are famously unstable and subject to quick changes.
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