- Market data suggests a potential decline as holders seek to capitalize on their profits.
- Based on the 90-Day Mean Coin Age, SHIB’s price could drop to $0.000014.
The price of Shiba Inu [SHIB] has risen by 12.77% in the past week. However, it appears that those who held onto the token during the surge are now looking to take their gains.
AMBCrypto discovered this by analyzing the order books on exchanges. By using the Bid-Ask Spread indicator, it was observed that there were more asks than bids.
SHIB holders preparing to cash in
In the world of crypto, ask signifies a readiness to sell, while bid indicates a willingness to buy. When the ask side surpasses the bid side, prices tend to decrease. Conversely, if the bid side is stronger, prices rise.
With more sellers in the market, the price of Shiba Inu was at risk of dropping, despite recently reaching $0.000016.
Source: IntoTheBlock
Another indicator suggesting a potential downtrend for SHIB is the Mean Coin Age (MCA), which represents the average age of all tokens on the blockchain.
An increase in coin age indicates that old coins are being moved, usually to be sold. Conversely, a decrease implies that holders are holding onto their assets or accumulating more.
Currently, the 90-day MCA on the Shiba Inu network has risen from 33.60 to 35.10 over the past three days.
This suggests that holders of the memecoin are shifting their assets and engaging in more transactions.
Network activity decreases, signaling potential price drop
If this trend continues, the price of SHIB could drop to $0.000014. Additionally, SHIB’s Network Growth has declined.
Network Growth measures the number of new addresses making transactions on the blockchain. An increase indicates growing network activity, while a decrease suggests low adoption.
Source: Santiment
Furthermore, SHIB’s 30-day MVRV Ratio has been on the rise, indicating increasing profitability for holders.
While this may lead to short-term price fluctuations, the negative reading suggests that SHIB may be undervalued, potentially leading to higher prices in the near to mid-term.
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For now, the increase in the MVRV Ratio could impact the token’s price.
Source: Santiment
Despite this, the negative reading suggests that SHIB may be undervalued, potentially leading to higher prices in the short to mid-term.
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