Will the value of the Shiba Inu fall further?
Popular meme coin Shiba Inu (SHIB) has seen a 21% drop in value over the past month. This decline is attributed to a general market downturn and a decline in SHIB well activity during that period.
According to data on the chain, SHIB's largest holders have significantly reduced their holdings over the past 30 days.
Shiba Inu Welsh litter holdings
According to IntoTheBlock data, large transactions involving SHIB decreased on a daily basis last month. For context, SHIB's daily count of transactions between $100,000 and $1,000,000 has dropped 46 percent over the past 30 days. Additionally, the daily number of transactions between $1,000,000 and $10,000,000 decreased by 64% during the same period.
A decline in the asset's large transaction count is a bearish sign. When retail investors see large investors reduce their trading activity, it often hurts their confidence, leading to less buying activity and lower prices.
Additionally, the decline in SHIB's Large Holders' Netflow confirms that whale addresses holding mame coins sold more than they accumulated during the review period. According to IntoTheBlock, the net flow of SHIB's largest holders has decreased by 391% in the last 30 days.
Read more: Shiba Inu — Beginner's Guide
Large holders are whale addresses that hold more than 0.1% of the asset transfer offer. Their net flow measures the difference between the amount of coins these investors buy and the amount they sell over a period of time.
When this metric decreases, it indicates that whale addresses are selling their holdings. This bearish signal usually precedes a market-wide decline in the coin stock.
SHIB Price Prediction: Possible Fall Below $0.000010?
Readings from the SHIB daily chart suggest that the Mem coin may be poised for a recovery. As of this writing, its Relative Strength Index (RSI) and Money Flow Index (MFI) values are 30.23 and 22.45 respectively.
Key momentum indicators measure the oversold and oversold market conditions of an asset. At the current price, SHIB's RSI and MFI indicator for the coin is approaching an oversold condition. An oversold condition usually precedes a price reversal, meaning that the asset's price may rise in the near term.
Read More: 12 Best Shiba Inu (SHIB) Wallets in 2024
If this happens, SHIB's value could rise to $0.000018. However, if the sell-off strengthens, the coin risks falling below the $0.0000010 price range.
Disclaimer
In accordance with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered 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. Please note that our terms and conditions, privacy policy and disclaimer have been updated.
