Are SHIB Investors Gearing up to Book Profits
The price of the Shiba Inu token ended the month of October on a strong note, as the last 10 days of the month saw it rise by 10%.
This was due to the fact that investors had once more shifted their attention towards the meme token markets.
Performance improvement
In the past week, there has been a significant improvement in the performance of the ShibaInu token, but recent on-chain data indicates that the price rally may not last for long.
The last month has seen ShibaInu token holders deposit more and more of their holdings onto crypto exchanges.
The data shows that between October 7th and November 2nd, a total of 2 trillion SHIB tokens had been moved into crypto exchanges.
The inflows had started on October 7thwhen the total supply of the ShibaInu token on exchanges had been around 168.5 trillion.
As of November, the total supply of the ShibaInu token on crypto exchanges has risen beyond 170 trillion.
This means that in a period of less than a month, investors have transferred about 2 trillion ShibaInu tokens on crypto exchanges.
When deposits on crypto exchanges increase during a bull rally, it indicates that investors might be interested in exiting early.
Since the market supply of the SHIB token has reached a peak of two months, it is likely that the meme token’s price may see some downward pressure in the coming days.
Long-term holders
The potential bearish outlook was further confirmed on Thursday when a number of long-term SHIB holders also started moving their tokens.
On November 2nd, there was an increase in ShibaInuAge Consumed metric to 436.88 trillion. The last time there had been an increase in this metric was on October 8th and September 4th before that.
In both cases, the price of the token had recorded a significant retracement. This particular metric tracks the changes in long-term holders’ trading activity.
If there is a rise in this metric during a price rally, it signals that long-term holders may have become cashing out.
To put it simply, the increasing exchange reserves and long-term holders selling their tokens could put an end to the bullish recovery.
Price prediction
The second-largest meme token in the market is currently trading at $0.000008, but there could be significant retracement.
But, there is also a group of holders at the $0.000006 price level, who had purchased their holdings and they could offer major support to the token.
According to the data, a total of 56 trillion SHIB tokens were purchased at this price by about 175,480 investors and if they hold, it could trigger a rebound.
But, if the bears are successful in breaking down this support cluster, then the price of the meme coin could decline below $0.000006.
The bulls will be able to regain control if the price of SHIB can reclaim $0.00001. A total of 285.4 trillion SHIB tokens were purchased at this price by 405,510 investors.
