Current market dynamics saw Shiba Inu (SHIB) losing many of your earnings in the beginning of the month. SHIB initiated a price increase on February 29 at $0.00001178 to reach $0.00004456 for the first time since December 2021, representing an outbreak of more than 278% in the space of three days.
However, it appears that investors are now turning away from the meme cryptocurrency, and the frenzied rally from the beginning of the month appears to be fading. Interestingly, on-chain data indicates that a portion of over 23 trillion SHIB has passed from the hands of long-term holders to the wallets of short-term holders over the past four days. This group of addresses is known for holding their SHIB tokens for quick returns rather than holding them for the long term.
Shiba Inu Price Downtrend Expected to Extend Beyond 45%
SHIB has been in a general downtrend since March 5th, with lower highs forming in cases of brief uptrends. Notably, the crypto is down 46% since hitting two-year highs. At the time of writing, SHIB is trading at $0.000024, down 4.79% and 27% in the last 24 hours and seven days respectively.
According to data from IntoTheBlock, short-term Shiba Inu owners have increased their holdings by 23 trillion SHIB over the past four days, signaling lower prices in the future. According to ITB’s “Balance by time held” metric, the balance held by traders holding less than a month has increased by 385% in the last 30 days. At the same time, long-term holders (more than a year) and cruise holders (from one to 12 months) reduced their balance by 9.27% and 11.30%, respectively.
This interesting move demonstrates the current dynamics between the various groups of SHIB traders. The decrease in long-term holders’ balances indicates that they may be taking profits after holding them for so long. At the same time, much of the supply is moving into the hands of short-term traders looking for quick profits, making SHIB vulnerable to continued selling.
Technical Analysis: What’s Next for SHIB Price?
SHIB global technical indicators point to short term correction unless there is a change bullish sentiment. The meme token has now broken below support at the $0.000026 price level and is now moving towards $0.000023, a level that acted as major resistance earlier in the month.
On the other hand, several fundamental factors point to a potential recovery in prices and continuous growth for meme currency. Despite the recent correction, SHIB price is still up 144% in the last 30 days, which shows that the uptrend may resume soon.
SHIB price rallies to $0.000026 | Source: SHIBUSDT on Tradingview.com
Featured image from The Market Periodical, chart from Tradingview.com
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