The price of Shiba Inu (SHIB) has seen a 4% increase in 24 hours, reflecting the bullishness in the broader crypto market. However, this price rally could be short-lived as bearish sentiment continues to overshadow the memecoin.
On-chain and technical indicators suggest that the Shiba Inu price rally could reverse its trend once the bullish pressure from the overall market weakens.
Shiba Inu Sees Outflow as Selling Pressure Mounts
Net outflows from the SHIB spot market have been observed, indicating that investors are increasingly opting to sell their holdings. Today (24) alone, $3.2 million has left the memecoin’s spot market as holders dump their coins.
This marks the fourth consecutive day of outflows from SHIB's spot market, with a total of $13 million withdrawn.
SHIB Entry/Exit in the Spot Market. Source: Coinglass
When an asset witnesses net outflows from its spot market, it means that more of the asset is being sold or withdrawn than is being bought or deposited. This signals reduced demand or a lack of confidence among investors, which can lead to downward price pressure.
As in the case of SHIB, persistent outflows indicate bearish sentiment as investors prefer to take profits rather than hold their coins.
In fact, BeInCrypto’s assessment of SHIB’s on-chain performance confirmed the drop in holding time over the past week. According to IntoTheBlock, this has fallen by 48% in the past seven days.
SHIB Trading Coin Holding Time. Source: IntoTheBlock
An asset’s holding time measures the average duration that its coins are held in wallets before being sold or transferred. When this metric decreases, it indicates increased selling pressure among market participants. This scenario reflects bearish sentiment towards the asset and contributes to its price decline.
Price prediction
SHIB is currently trading at $0.000022, holding above the support at $0.000021. However, as bearish pressure intensifies, SHIB could see a drop to this support level.
If buyers fail to defend it, the downtrend could gain momentum, taking the SHIB price to $0.000019.
SHIB Price Analysis. Source: TradingView
On the other hand, if market sentiment turns positive, the price rally could continue towards $0.000026.
The article Shiba Inu (SHIB) Surges, But Market Exits Point to Trouble appeared first on BeInCrypto.
