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Shiba Inu Price Analysis: On-chain Metrics Suggest Consolidation Phase Ahead
Shiba Inu’s price recently dropped below $0.00003 on March 12, following a remarkable 300% rally that pushed SHIB to a three-year peak of $0.00004 on March 9. As the memecoin frenzy seems to be cooling off, it’s essential to look at key on-chain metrics that could impact Shiba Inu’s price action in the coming days.
Long-term holders exiting amid profit-taking spree
In the past month, the memecoin sector, including SHIB, has seen significant growth. However, recent data shows that 20,000 SHIB long-term holders have taken advantage of the rally to exit their positions at favorable prices. This trend is reflected in the decrease in the number of long-term holder addresses from 1.03 million on Feb. 29 to 1.01 million on March 13.
Decline in network transactions
Long-term investors play a crucial role in the stability of any blockchain network. Therefore, the recent 81% decline in network transactions on the Shiba Inu network over the past week is concerning. This drop in activity could signal lower demand for products and services on the network, potentially impacting SHIB’s price in the near future.
Price prediction and support levels
Despite the decline in network demand, SHIB’s price could hold above $0.000030 if swing traders and speculators remain active. However, if selling pressure intensifies, the $0.000024 support level may come into play. A breach of this level could lead to a deeper correction, with the potential for further downward movement indicated by the Parabolic SAR indicator at $0.000045.
Looking ahead, a breakout above the Upper Bollinger Band resistance at $0.000043 could signal a shift in sentiment towards a more positive outlook for SHIB’s price.
In conclusion, it’s important for investors to monitor on-chain metrics and network activity to gauge the future direction of Shiba Inu’s price. Stay informed and stay ahead of market trends to make informed investment decisions.
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