The unexpected spike in Shiba Inu’s old coins moved may have changed previous forecasts.
- A spike in the Mean Coin Age indicated a further price decrease for SHIB. The Exchange Netflow Volume was negative, suggesting possible stability.
On the 5th of May, the 90-day Mean Coin Age (MCA) on the Shiba Inu [SHIB] network suddenly jumped, AMBCrypto noticed. As the name implies, the MCA is the average age of all tokens on a blockchain.
However, the coin age concept does not only concern itself with whether a token is old or young alone, as the metric correlates with price.
The seniors are letting go
Historically, a low MCA implies that more coins are being retired to a wallet.
In the short term, this movement is a sign that holders are not willing to sell. As such, the price of the token involved might not face a severe decline.
On the other hand, spikes in the MCA, like it was with Shiba Inu, suggest that old coins are transferring their assets to another residence. In most cases— an exchange.
Source: Santiment
Therefore, it could be possible that SHIB’s price could be on the verge of another decline. At press time, SHIB changed hands at $0.000024.
In the last 30 days, this was an 8.22% decline. If the metric mentioned above continues to rise, the value of the token might drop below this price.
However, AMBCrypto looked at another metric to assess if the imminent decline could be valid or otherwise. For this part, we considered social dominance.
As of this writing, Shiba Inu’s social dominance had risen to 1.2. This increase suggests rising discussions about the project when compared to the other 99 in the top 100.
SHIB eyes a move to $0.000019
Regarding the price action, rising social dominance might be good. However, if it gets too high, the price of SHIB might feel some scorch, and a plunge could be impending.
If this is the case, SHIB might tumble by another 20%, and this could leave the price at $0.000019. Furthermore, the one-day volatility showed that this prediction could be possible.
Source: Santiment
At press time, on-chain data showed that volatility was down to 0.15. This decline implies that the memecoin might not experience massive price fluctuations soon.
Therefore, those expecting a rally to $0.000030 might need to lower their presumption. From the look of things, Shiba Inu’s price range in the short term could be between $0.000019 and $0.000023.
In the meantime, the token might get a saving grace thanks to data from Glassnode. According to AMBCrypto’s analysis of Glassnode, the Exchange Netflow Volume was -86.58 billion.
This metric is the difference between the volume flowing in and out of exchanges. If this metric is positive, it implies that more tokens went into exchanges than those withdrawn.
Thus, the negative reading implies that more SHIB holders took their tokens out of most exchanges.
Source: Glassnode
If this number of tokens withdrawn continues to rise, then Shiba Inu might find a balance, and a notable correction could be off the table.
However, if the number changes to the green zone, the projected decline might be validated.
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