Shiba Inu (SHIB), the popular meme coin, has experienced a 4% price increase in the last 24 hours, reflecting the general uptick in the cryptocurrency market. However, this price rally may not be sustainable as bearish sentiment looms over SHIB. On-chain and technical indicators suggest that the price rally of Shiba Inu could reverse its trend once the bullish pressure in the overall market weakens.
There has been a noticeable increase in selling pressure on Shiba Inu, as net outflows from SHIB’s spot market have been observed. In just one day, $3.2 million has exited the meme coin’s spot market as investors choose to sell their holdings. This marks the fourth consecutive day of outflows from the SHIB spot market, with a total of $13 million withdrawn. When an asset experiences net outflows from its spot market, it indicates that more of the asset is being sold or withdrawn than bought or deposited, signaling reduced demand and lack of investor confidence.
BeInCrypto’s assessment of SHIB’s on-chain performance shows a decline in the holding time of SHIB tokens over the past week, dropping by 48% according to IntoTheBlock. An asset’s holding time measures the average length of time its tokens are held in wallets before being sold or transferred. A decrease in this metric indicates increased selling pressure among investors, contributing to a bearish sentiment and price decline for the asset.
Currently, SHIB is trading at $0.000022, holding above support at $0.000021. However, with increasing bearish pressure, there is a possibility of a drawdown to this support level. If the bulls fail to defend it, SHIB’s price could drop to $0.000019. On the other hand, if market sentiment turns positive, the Shiba Inu price rally could continue towards $0.000026, painting a more optimistic picture for SHIB’s future price movements.
In conclusion, Shiba Inu’s recent price rally may not be sustainable in the face of mounting selling pressure and bearish sentiment. Investors are opting to sell their holdings, leading to net outflows from SHIB’s spot market. The decline in SHIB’s holding time and potential drawdown to key support levels indicate a challenging road ahead for the meme coin. However, if market sentiment turns positive, SHIB could potentially continue its price rally to higher levels.
