- Shiba Inu’s price dropped by 2.5% in the last 24 hours.
- Most metrics and indicators looked bearish on SHIB.
Shiba Inu’s [SHIB] price volatility remained high last week as its value witnessed both major northward and southward movements. This might have sparked fear among investors, which resulted in a rise in selling pressure.
Does this mean SHIB is poised for a price correction soon?
A look at Shiba Inu’s sell-off
CoinMarketCap’s data revealed that SHIB’s price action remained bullish until the 29th of May as its price touched $0.000029.
However, the memecoin couldn’t sustain the rally and started to drop again. SHIB was down by 2.5% in the last 24 hours and, at press time, was trading at $0.00002536 with a market capitalization of over $14.9 billion.
In the meantime, investors made up their minds to sell the memecoin.
Ali, a popular crypto analyst, recently posted a tweet highlighting an interesting development. As per the tweet, over 4 trillion SHIB have been sent to crypto exchanges in the last two weeks, worth around $103 million.
To double check whether selling pressure was high on Shiba Inu, AMBCrypto analyzed its on-chain metrics. As per our analysis of Santiment’s data, SHIB’s exchange outflow spiked substantially last week.
There was also a major rise in its supply on exchanges and a drop in its supply outside of exchanges.
These metrics clearly suggested that investors were actually swelling. In fact, whales also followed a similar trend and sold SHIB. This was evident from the slight drop in its supply held by top addresses over the last seven days.
Source: Santiment
Will SHIB’s price drop?
Since high selling pressure often results in price drops, AMBCrypto then analyzed SHIB’s state to see whether that would be the case this time around.
An analysis of Glassnode’s data revealed that after a drop, SHIB’s NVT ratio started to increase again. A rise in the metric means that an asset is overvalued, indicating that the chances of a price decline are high.
Source: Glassnode
A few of the technical indicators also looked pretty bearish on the memecoin. For instance, its Chaikin Money Flow (CMF) registered a downtick.
The Relative Strength Index (RSI) also followed a similar trend. Both of these indicators hinted at a price drop. If that happens, then investors might witness SHIB drop to its support level of $0.000020 in the coming days.
Source: TradingView
Read Shiba Inu’s [SHIB] Price Prediction 2024-25
It was interesting to note that while SHIB’s value dropped, its ecosystem’s token, Bone ShibaSwap [BONE] appeared stable.
According to CoinMarketCap, BONE’s price increased by more than 1% in the last 24 hours. At press time, it was trading at $0.6595.