In the past two weeks, over 4 trillion Shiba Inu (SHIB) tokens, valued at more than $103 million, have been deposited into various cryptocurrency exchanges.
This significant movement suggests a potential profit-taking spree and has raised concerns about increased selling pressure on the popular memecoin.
Crypto analyst Ali Martinez recently posted on X (formerly Twitter), revealing that these tokens have been transferred to exchanges within the last two weeks, indicating that investors might be preparing for a significant sell-off.
On-chain metrics indicate selling activity
To verify the rising selling pressure on Shiba Inu, Finbold analyzed on-chain metrics using data from Santiment. The analysis revealed a significant spike in SHIB’s exchange outflow last week, accompanied by an increase in supply on exchanges and a decrease in supply outside of exchanges.
SHIB price, exchange inflow and outflow. Source: Santiment
These metrics suggest that investors are actively selling their SHIB holdings, with even whales participating in this trend. This was evident from a slight drop in SHIB supply held by top addresses over the last seven days.
Given the heightened selling pressure, further analysis was conducted to assess SHIB’s future price trajectory.
Finbold retrieved data from Santiment showing SHIB’s NVT (Network Value to Transactions) ratio rising again, indicating the asset might be overvalued and suggesting a potential price decline.
Additionally, the relative strength index (RSI) is close to 71, indicating an overbought condition.
SHIB RSI, NVT value.Source: Santiment
SHIB price analysis
SHIB 7-day price chart. Source. Finbold
As of writing, Shiba Inu’s price noted a 0.39% fall in the past 24 hours and is currently trading at $0.00002532 with a weekly gain of 3%.
Coinglass data indicates that SHIB’s futures open interest (OI) has spiked to notable levels in recent months, underscoring increased investor interest in the asset. This increased interest aligns with the heightened on-chain activity indicated above.
The transfer of 4 trillion SHIB to exchanges amidst Shiba Inu’s otherwise impressive bull run has stirred considerable debate within the crypto community.
The dog-themed memecoin, which saw a 144% rise this year, faces the possibility of significant sell-offs due to profit-taking behavior by investors.
Initially trading near $0.000009 at the beginning of the year, SHIB reached a peak of $0.000035 in March before declining.
As the market watches closely, Shiba Inu’s future price movements remain uncertain. The substantial transfer of SHIB to exchanges underscores potential sell-off intentions, and investors should brace for possible further declines.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
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