The frenzy for Meme Coin in recent weeks has pushed the price of Shiba Inu (SHIB) to an eight-month high of $0.000030 on November 12. With this growth, a significant portion of the SHIB supply is currently in profit.
However, as market sentiment changes, many Shiba Inu holders are now choosing to take profits by selling their SHIB.
Shiba Inu holders sell to take profits
According to IntoTheBlock's Global In/Out of the Money indicator, there are 829 trillion SHIB in 851K addresses, accounting for 62% of the total holders of this Meme Coin, who are 'in profit'.
An address is considered 'in profit' when the current market price of the asset it holds is higher than the average purchase cost of the Tokens in that address. This indicates that the holder will realize profits if they sell the assets they are holding at the current market price.
In contrast, 82.39 trillion SHIB held by 398K addresses are 'in loss'. These are addresses currently holding coins at a loss.
Shiba Inu Global In/Out of the Money. Source: IntoTheBlock
With 62% of holders currently in profit, profit-taking activity has been restored. This is reflected in the decreasing Chaikin Money Flow (CMF) indicator for SHIB. As of the time of writing, this indicator is at 0.08, trending down towards the central level of 0.
CMF measures the market's buying and selling pressure. When it decreases to 0, it is a sign that buying momentum is weakening, indicating that market participants are losing confidence in the uptrend.
Shiba Inu CMF. Source: TradingView
Additionally, the configuration of SHIB's moving average convergence divergence (MACD) indicator confirms this negative outlook. At the time of reporting, the MACD line of the coin (green) is below the signal line (orange).
This indicator measures the price trend and momentum of an asset, identifying potential buy or sell signals. When the MACD line falls below the signal line, it is a sign of a downtrend and confirms the reversal of an uptrend. It indicates increasing selling pressure, and the asset's price may continue to decline.
Shiba Inu MACD. Source: TradingView
SHIB price prediction: Drop to $0.000020?
SHIB is trading at $0.000025, marking a 4% decrease in the past 24 hours. It remains above the important support level at $0.000022. If SHIB falls below this support level, the price could further decline to $0.000020.
Shiba Inu price analysis. Source: TradingView
Conversely, if profit-taking eases and the Meme Coin sees a surge in new demand, it will break through the resistance level at $0.000026 to regain the eight-month peak of $0.000030.
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