$SHIB - Shiba Inu Faces Potential Decline as 4 Trillion Tokens Hit Exchanges.
Shiba Inu (SHIB) experienced significant price volatility last week, with its value fluctuating sharply. Initially, SHIB’s price surged, reaching $0.000029 by May 29. However, the upward momentum was short-lived as the price began to decline, dropping by 2.5% in the last 24 hours to trade at $0.00002536, with a market cap of over $14.9 billion.
1. Increased Selling Pressure
Investor sentiment turned bearish, leading to increased selling pressure. Crypto analyst Ali noted that over 4 trillion SHIB, worth approximately $103 million, were sent to exchanges in the past two weeks. On-chain data from Santiment confirmed this trend, showing a spike in SHIB’s exchange outflow, increased supply on exchanges, and decreased supply outside of exchanges. Even large holders, or whales, appeared to be selling, as evidenced by a slight drop in SHIB held by top addresses over the past week.
2. Potential for Price Drop
AMBCrypto’s analysis suggests that the high selling pressure could lead to a further price drop. Glassnode data showed an increasing Network Value to Transactions (NVT) ratio after a recent decline, indicating that SHIB might be overvalued and susceptible to a price drop. Technical indicators supported this bearish outlook; both the Chaikin Money Flow (CMF) and the Relative Strength Index (RSI) registered downticks, signaling potential further declines. If the selling pressure persists, SHIB could fall to its support level of $0.000020.
3. Ecosystem Stability
Interestingly, while SHIB’s price was falling, its ecosystem token, Bone ShibaSwap (BONE), showed stability. BONE’s price increased by over 1% in the last 24 hours, trading at $0.6595 at press time.
In summary, SHIB’s recent high volatility and increased selling pressure suggest a potential price correction. While SHIB struggles, BONE remains relatively stable, highlighting a nuanced dynamic within the Shiba Inu ecosystem.
