Shiba Inu (SHIB), once a high-flying cryptocurrency, has recently faced a significant decline in value, losing over 50% since its peak in 2023. This downtrend is expected to persist in the near term, as multiple technical indicators suggest further downward pressure on SHIB.
Surge in Exchange Supply
A concerning development contributing to SHIB’s downward trajectory is the sudden surge in SHIB tokens being moved to exchanges, indicating a growing number of investors preparing to sell. According to CryptoQuant data, the total SHIB exchange supply has reached a 50-day peak of 169 trillion tokens.
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The reasons behind this increased exchange supply could be varied, among them:
- Investors who purchased SHIB at higher prices seek to capitalize on profits.
- Concerned investors who are uncertain about SHIB’s long-term prospects decided to offload their tokens.
- Investors transferring their SHIB tokens to other exchanges to participate in different projects.
Regardless of the exact motivations, the upsurge in exchange supply presents a bearish signal for SHIB’s future.
Sell Orders Overshadowing
Adding to the bearish sentiment, sell orders currently dominate the SHIB spot markets. Data aggregated by IntoTheBlock from 16 established exchanges reveals that bearish traders have placed active sell orders for 2.5 trillion SHIB within the 10% threshold of the current Shiba Inu prices. In contrast, buy orders for 2.14 trillion SHIB lag behind.
This dominance of sell orders indicates greater selling pressure compared to buying interest, suggesting the potential for further downward pressure on SHIB’s price in the near term.
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Global In/Out of the Money Chart
Supporting the bearish outlook for SHIB is the Global In/Out of the Money (GIOM) chart, which highlights the distribution of entry prices for current SHIB holders. The chart indicates that breaching the crucial support level at $0.000006 could trigger significant losses for Shiba Inu.
Notably, a substantial cluster of SHIB holders purchased their tokens at an average price of $0.000007. If the price falls below this level, it is likely to prompt these investors to sell their holdings, potentially leading to further downward momentum.
Considering the technical indicators, Shiba Inu’s price is expected to continue experiencing downward pressure. However, a bullish scenario could emerge if the bulls manage to reclaim the $0.00001 level.
Investors and SHIB enthusiasts should closely monitor market developments and remain cautious amid the current uncertain climate surrounding Shiba Inu (SHIB).
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