The price of Shiba Inu (SHIB), a prominent meme token in the cryptocurrency market, has experienced a notable decline. This downtrend is attributed to a broader market downturn triggered by Bitcoin (BTC) and investors‘ actions within the market. Understanding the reasons behind SHIB’s price drop is vital for stakeholders.
What Causes Increased Selling Transactions?
The recent surge in Bitcoin’s price prompted many investors to capitalize on their gains, leading to an increase in selling activity across the market. This behavior negatively impacted SHIB as confidence among its holders dwindled. The heightened selling pressure caused Shiba Inu’s price to reflect this broader market trend.
Moreover, a significant rise in the total supply of SHIB on cryptocurrency exchanges was observed. This surge, reaching a six-month high, indicates that long-term holders are moving their tokens onto exchanges, likely for sale. Recent data highlights that over 4.66 trillion SHIB, valued at $103 million, were transferred to exchanges within the last 48 hours, further exacerbating the selling pressure.
How Does Support Level Influence SHIB’s Price?
The age consumption metric, essential for understanding supply movement in cryptocurrencies, has shown substantial increases. This metric calculates the total days lost by multiplying the moved supply by the days since the last transaction. The inability of SHIB to surpass the $0.00002584 mark, coupled with consolidation at $0.00002267, signals a downward trend toward the crucial support level of $0.00002093, a level held since April.
If SHIB’s price breaks below the $0.00002093 support level, the decline might deepen, potentially dropping to $0.00002000. Conversely, if the support holds, a recovery phase could be initiated, resulting in the continuation of consolidation and invalidation of the downward pressure.
Key Takeaways
– Watch for further increases in selling transactions, which can signal additional price drops.
– Monitor the total supply of SHIB on exchanges; substantial increases may indicate more selling pressure.
– Pay attention to the $0.00002093 support level; its breach could lead to significant price declines.
– Recovery scenarios depend on the support level holding firm, suggesting a potential for price stabilization.
In conclusion, the falling price of Shiba Inu is influenced by broader market trends and specific investor behaviors. Monitoring these factors can provide valuable insights for SHIB holders and potential investors.