In the past 24 hours, the prices of SHIB and BONE have fallen by 4% and 8%, respectively.
It is clear from on-chain metrics that investors are selling their holdings.
The Shiba Inu [SHIB] ecosystem token had been enjoying a comfortable bull rally for several days in a row, even recording double-digit gains. However, things have changed dramatically in the past 24 hours as a trend reversal has occurred.
Not only SHIB, but also Bone ShibaSwap [BONE] and Doge Killer [LEASH] have seen significant price drops. Interestingly, some believe this is a result of false FUD ahead of Shibarium’s launch. A closer look at the ecosystem provides a better understanding of what is happening.
Shiba Inu was hit hardest
SHIB, the largest token in the Shiba Inu ecosystem, has seen its price drop by more than 4.5% in the past 24 hours. However, it is not the token itself that has been most affected.
BONE’s price has fallen by more than 8% in the last day. At press time, it is trading at $1.50 with a market cap of over $344 million. Unfortunately, its trading volume has increased by 40% during this period, which is bearish.
BONE’s indicators show that investors are choosing to sell their holdings. This is evident from the drop in off-exchange supply and the increase in on-exchange supply. The price crash has also led to a rise in its 1-week price volatility, which could spell trouble in the coming days.
SHIB has obstacles to overcome
SHIB has lost a significant amount of its market value in the past 24 hours, causing it to drop down the rankings of top cryptocurrencies. At press time, SHIB is trading at $0.00001029 with a market cap of $6.1 billion, making it the 13th largest cryptocurrency, according to CoinMarketCap.
The price crash has sparked panic among investors, with bullish sentiment falling 32% in the past 24 hours. In addition, its social engagement has also declined.
One reason behind the downward price trend is the increase in selling pressure. Data from CryptoQuant shows that SHIB’s net deposits on exchanges are high compared to the past seven-day average, indicating that investors are selling memecoin.
Another negative indicator is that its number of active addresses is declining. The price drop also caused the MVRV ratio of Shiba Inu to decline. In addition, as the price dropped, the whale activity around SHIB also decreased.
Coinglass’s chart shows that SHIB’s open interest is increasing. The rise in this indicator shows that more capital is entering the market. This indicates a high probability that the current price trend will continue.
Among the Shiba Inu tokens, LEASH seems to be performing relatively well, with its price only slightly down over the past 24 hours. As of the time of writing, it is trading at $564.22.
