Shiba Inu (SHIB) Price Nosedives 30%, Prompting Short-Term Holders’ Exodus
Key Takeaways
- The number of SHIB holders who purchased the token within the last 30 days has decreased.
- On-chain data shows weak network activity, which is bearish for SHIB’s price action.
- SHIB’s price might experience another drawdown amid strong bearish momentum.
In the past 30 days, Shiba Inu (SHIB) has suffered a steep 30% decline, dropping from $0.000025 to $0.000015.
This sharp decline has shaken investor confidence, particularly among short-term holders who are rapidly exiting their positions.
With the broader market sentiment turning bearish, the Shiba Inu coin price now faces a critical test. This analysis reveals why it could be challenging for SHIB to experience a quick rebound.
Shiba Inu Sell-Off Intensifies
One indicator that shows the activity of short-term holders is the Balance by Time Held metric. This metric checks if there is an influx of holders buying into a cryptocurrency or if more participants are offloading the asset.
An increase in any of the cohorts is typically a bullish sign. However, according to IntoTheBlock, the number of SHIB short-term holders has significantly decreased over the past month.
For context, these holders refer to participants who purchased the memecoin within the last month.
The decline in the number of short-term holders signals weakening conviction in SHIB’s potential. This trend also suggests rising selling pressure as investors offload their positions amid uncertainty.
If this metric continues to drop, SHIB’s price could face further downside, as reduced demand may hinder any significant recovery.
No Buy Signal Yet
Furthermore, on-chain data from Santiment shows that SHIB’s price-Daily Active Addresses (DAA) divergence has fallen to the negative region. The price-DAA divergence shows whether user engagement is increasing alongside the price or not.
When the reading is positive, it indicates rising user participation, a bullish sign that could drive the price higher.
On the flip side, a negative reading suggests that user engagement is declining while the price is also dropping—an indication of weakening network activity. This bearish sign, if sustained, could reduce the likelihood of a strong recovery.
SHIB Bearish Trend Deepens
On the daily chart, SHIB’s price continues to trade within a falling range of $0.000015. Amid this decline, the Moving Average Convergence Divergence (MACD) has dropped to the negative region.
The decline in the MACD reading indicates bearish momentum around SHIB. Like the MACD, the AO reading is also negative.
This reinforces the negative sentiment around the token. If this trend continues, Shiba Inu’s price will likely drop to $0.000012.
Alternatively, if SHIB short-term holders decide to accumulate the memecoin again, this trend might not remain the same.
If that happens, then SHIB’s price might bounce toward $0.000025.
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