SHIB faces short-term selling pressure that could undermine its recent 12.77% rise.
- Market data revealed a potential dip as holders looked to cash in on their gains. As evidenced by the 90-Day Mean Coin Age, SHIB’s price might decrease to $0.000014.
The price of Shiba Inu [SHIB] has increased by 12.77% in the last seven days. But as it stands, it seems those who held the token through the hike are ready to book profits.
AMBCrypto got wind of this after examining the order books on exchanges. Using the Bid-Ask Spread indicator, we observed that there were more asks than bids.
SHIB holders ready to take profits
In crypto, ask means readiness to sell. Bid, on the other hand, implies preparedness to buy. If the ask side outpaces the bid segment, prices fall. However, if the opposite happens, prices will increase.
Since market participants were more prepared to sell, it means that Shiba Inu’s price risked falling, despite recently reaching $0.000016.
Source: IntoTheBlock
Another metric that revealed that SHIB could lose hold on the uptrend is the Mean Coin Age (MCA). As the name implies, the MCA is the average age of all tokens on the blockchain.
When the coin age increases, it means old coins are moving from their previous wallets to another. In most cases, this means that holders are willing to sell.
On the other hand, a decrease in the MCA implies that holders are sticking to their assets, and are inclined toward accumulating more.
At press time, the 90-day MCA on the Shiba Inu network has moved from 33.60 to 35.10 within the last three days.
This implied that holders of the memecoin were shifting their assets from where they were held and engaging in more transactions.
Traction on the network drops, but there is more
If this continues, the price of SHIB could drop as low as $0.000014. Apart from the price, SHIB’s Network Growth also fell.
Network Growth measures the number of new addresses making their first transactions on the blockchain. When it increases, it implies that the network is gaining a lot of traction.
Source: Santiment
But a decrease suggests that adoption is low. For Shiba Inu, it was the latter, suggesting that the price might also be affected.
Meanwhile, SHIB’s 30-day MVRV Ratio has been climbing. The MVRV ratio shows the rate of profitability around a cryptocurrency, An increase implies that more holders are getting more profitable.
A decrease, on the other hand, indicates unrealized losses. In recent time, the metric jumped, indicating that SHIB’s price increase has landed more holders in profit.
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For the short term, this increase could be detrimental to the token’s price.
Source: Santiment
However, the reading still remained negative, suggesting that SHIB could be undervalued. Considering this condition, the value of the token could hit higher price in the short to mid-term.
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