Can the Shiba Inu (SHIB) price gradually pull back on demand?
The Shiba Inu (SHIB) price trend has declined this week as the bulls failed to break the $0.000009 resistance. On-chain analysis shines a spotlight on critical data points that could determine SHIB's price action in the coming days.
Shiba Inu prices entered a consolidation phase this week. Will memecoin, the second largest by market capitalization, break from this point and bounce back?
Crypto Whales Holding SHIB has adjusted their trading practices.
In the last week of October, the Bitcoin (BTC) market rally expanded into the memecoin markets, with SHIB prices recording double-digit gains. However, on-chain data shows that whales have reduced trading activity since Shiba Inu declined $0.000008 on October 24.
Shiba Inu whalers hit a two-month high of 69 large transactions on Oct. 24, according to Into ZeeBlock. But as of November 2, that number has gradually dropped to 39 whaling transactions, representing a 44% decrease.
The Daily Transactions scale provides daily sums of trades greater than $100,000. Traditionally, a sharp decline in whale trades like the one above is often taken as a bearish sign.
It indicates growing interest among large institutional investors. Crucially, this can influence strategic retailers to take a negative stance. If this thesis holds, the SHIB token may experience low market demand in the coming days.
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SHIB's sales orders exceeded the current market demand
Total order books are another important chart on the chain that points to weak demand across SHIB's spot markets at the moment. As shown below, SHIB traders have placed active sell orders for 6.5 trillion tokens. And sadly, this is significantly higher than the 6 trillion SHIB buy order currently listed on 10 crypto exchanges.
Aggregate order books of exchanges show a snapshot of the total number of active market orders for an asset. Logically, when demand is low, many sellers can compete by lowering their prices.
Therefore, the decline in whaling activity and weakening market demand may trigger SHIB's price movement in the coming days.
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SHIB Price Prediction: Could it fall to $0.000005?
According to the current chain statistics, Shiba Inu may experience a price drop to $0.000006 in the coming days.
The Global In/Out Money (GOM) chart showing the entry price distribution of current SHIB holders supports this bearish narrative. Shiba Inu shows that missing critical support at $0.00007 will result in big losses.
As shown below, 52,9200 addresses bought 19.37 trillion SHIB for a maximum of $0.000007. Considering that this is the largest set of support below current prices, you may want to try harder to HODL.
But if demand for whales continues to decline, the price of a Shiba Inu could drop to $0.000005.
Alternatively, the bulls could overturn that bearish forecast if Shiba Inu's price recovers to $0.00001. But that looks pretty good right now, as 153,700 addresses bought 68.5 trillion SHIB for an average of $0.000008. If you book profits early, the SHIB price may come back.
But from that resistance level, the price of the Shiba Inu could reach the $0.00001 range.
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Disclaimer
In accordance with Trust Project guidelines, this price analysis article is for informational purposes only and should not be construed as financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.
