Shiba Inu (SHIB) price movement slowed this week after bulls failed to break through the $0.000009 resistance level. On-chain research focuses the spotlight on crucial data factors that could determine SHIB price action in the coming days.
As the positive momentum slowed, the price of Shiba Inu entered a consolidation period this week. Will the second-largest memecoin by market capitalization crash and rebound from here?
Crypto Whales Holding SHIB Have Tuned Down Their Trading Activity
In the final week of October, the SHIB price increased by double digits as the Bitcoin (BTC) market surge expanded to the memecoin marketplaces. On-chain data readings, however, reveal that whales have reduced their trading activity since Shiba Inu rejected $0.000008 on October 24.
Shiba Inu whales completed a two-month high of 69 Large Transactions on October 24, according to IntoTheBlock. However, as of November 2, that number has gradually decreased to 39 whale trades, a 44% decrease.
The daily transactions measure calculates the number of trades that exceed $100,000 in value on a daily basis. A sharp drop in whale transactions, as seen above, is often interpreted as a negative indication.
It reflects an increasing lack of enthusiasm among big institutional investors. This, crucially, may inspire strategic retail traders to adopt a negative attitude as well. If this hypothesis is correct, the SHIB token may see low market demand in the days ahead.
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SHIB Sell Orders Have Exceeded Market Demand
Another important on-chain statistic that is now indicating a deteriorating demand across SHIB spot markets is the Aggregate Order Books. SHIB traders had active sell orders for 6.5 trillion tokens, as seen below. Worryingly, this is significantly greater than the 6 trillion SHIB buy order currently listed on 10 cryptocurrency platforms.
Exchange Aggregate Order Books provide a view of the total active market orders for an item. When demand is low, several sellers may be forced to compete by dropping their prices.
As a result, the drop in whale trading activity and diminishing market demand may combine to cause a downward SHIB price movement in the coming days.
SHIB Price Prediction: Possible Drop to $0.000005?
Shiba Inu is expected to fall more in price in the following days, according to current on-chain statistics.
This bearish narrative is supported by the Global In/Out of the Money (GIOM) chart, which illustrates the entry price distribution of current SHIB holders. It portrays Shiba Inu losing critical support at $0.00007 as a catalyst for greater losses.
As shown below, 52,9200 addresses paid a maximum of $0.000007 for 19.37 trillion SHIB. Given that this is the greatest support cluster below current prices, they will almost certainly make frantic efforts to HODL.
However, if whale demand continues to fall, Shiba Inu’s price could fall even further below $0.000005.
Alternatively, if Shiba Inu’s price can recapture $0.00001, the bulls will be able to counter that bearish prediction. However, that appears to be a long shot at the moment, as 153,700 addresses have 68.5 trillion SHIB purchased at an average price of $0.000008. If they take profits too soon, the price of SHIB would most certainly retrace.
However, if that resistance level falls, Shiba Inu’s price could rise to the $0.00001 range.
Disclaimer: The information provided is not trading advice. Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
