Shiba Inu's price dropped below $0.00003 on March 12, and some important signs suggest the uncertain phase might stick around.
Around 20,000 people who held Shiba Inu for a long time sold their coins recently, likely to make profits. This happened after Shiba Inu's price shot up by 300% to reach $0.00004 on March 9.
During the last month, many meme coins like PEPE, Dogecoin, BONK, and Dogwifhat saw huge increases in their prices. Shiba Inu wasn't left behind, rising by 420% from $0.000009 on February 4 to $0.00004 on March 5.
This rapid rise meant that people who had Shiba Inu for a long time and bought it when it was at these prices in 2021 were able to make profits. Based on recent data, many of these long-term holders sold their coins when prices were high.
A metric called "addresses by time-held" shows that the number of people holding Shiba Inu for a year or more decreased from 1.03 million on February 29 to 1.01 million on March 13, meaning 20,000 long-term investors sold their tokens in March.
This selling started in early March when Shiba Inu's price crossed $0.00003, a level it hadn't reached in two years.
Long-term investors are important for the stability of any cryptocurrency network. Their selling not only increases the available supply but also sends negative signals to other investors and may discourage new ones.
Confirming this negative trend, the number of transactions on the Shiba Inu network dropped by 81% over the past week. When transaction numbers decrease while the price is rising, it indicates less demand for services on the network, which could lead to a halt in the price rally.
Shiba Inu's price is currently facing pressure as it goes above $0.000032. If selling continues, it might find support around $0.000024, but if that level breaks, the price could drop further.
Despite the decrease in network activity, if traders and speculators keep buying, the price might stay above $0.000030 for a while. Breaking above the resistance at $0.000043 could indicate a more positive outlook.
