Even with the recent rollout of Shibarium and its impressive short-term performance, the SHIB price hasn’t reflected these milestones on its chart. Shiba Inu is still struggling with breaking through key resistance levels, leading to a negative shift in on-chain metrics. Additionally, the lack of interest from large investors, or “whales,” in accumulating more SHIB has resulted in low price volatility, strengthening the confidence of those holding short positions.
On-chain Metrics Flash Selling Signal For SHIB
Based on data from IntoTheBlock, Shiba Inu has experienced a significant seven-day shift, registering a negative netflow of 756% during this period.
The Large Holders Netflow metric reveals fluctuations in the holdings of major investors, those who own more than 0.1% of the total supply. Essentially, spikes in netflow suggest that these large players are accumulating, while declines indicate either reduced holdings or active selling.
The above data is supported by the trend in large SHIB transactions. The numbers indicate a steady decrease in such transactions over the past week, falling from a peak of 52 down to 17. This suggests that major investors, or “whales,” are hesitant to hold or transfer SHIB, especially given the bearish sentiment near key resistance levels. This hesitancy has contributed to a reduction in price volatility, which now stands at 36.2%.
On a positive note, the daily active address count for SHIB is on the rise. According to the data, the number of Shiba Inu’s daily active addresses has jumped from 2,840 to 3,160 over the last three days. This uptick indicates increased network activity, even in the face of rising selling sentiment and reduced volatility. Such an active network could set the stage for a shift toward buying sentiment in the days ahead.
What’s Next For SHIB Price?
For the past several days, Shiba Inu has been trading within a narrow range, trapped between its 20-day EMA of $0.0000073 and the channel’s downward line. Bears are strongly defending a surge above EMA100 as SHIB struggles for a clear move. As of writing, SHIB price trades at $0.0000073, declining over 1.8%.
Typically, a period of low volatility like this is a sign of significant price movement later. If the SHIB price breaks out and sustains a close above the pattern’s line, it would indicate that the bulls are regaining control. This could potentially trigger a rally towards the $0.0000085 mark. However, to initiate a more substantial upward trend towards $0.00001, buyers will need to clear the immediate hurdle.
Conversely, if the price reverses direction and falls below the $0.0000069 support level, the bullish outlook would be negated. Such a move could drag the price down to the next support level at $0.0000064, a level that bulls are likely to defend aggressively.
