Why Are Shiba Inu Holders Selling Their Coins?
The meme coin craze of the past few weeks has fueled the Shiba Inu’s (SHIB) price rose to an eight-month high of $0.000030 on November 12. As a result of this rally, a large portion of SHIB’s supply is now profitable.
However, as market sentiment changes, many Shiba Inu holders are now choosing to secure gains by selling their SHIB coins.
Shiba Inu owners sell for profit
According to IntoTheBlock’s global fund inflow/outflow indicator, 829 trillion SHIB coins 851,000 addresses (62% of all Meme coin holders) hold addresses that are “real-valued.”
An address is considered “in-the-money” when the current market price of the assets held by an address is higher than the average acquisition cost of the tokens in that address. This indicates that holders can realize profits by selling their holdings at prevailing market prices.
On the other hand, 82.39 trillion SHIB dog 398,000 addresses held assets that were “out of money.” These addresses are currently holding their tokens at a loss.
Currently 62% of holders have made a profit, and profit-taking activities are on the rise again. This was reflected in a decline in SHIB’s chai cash flow (CMF). As of this writing, the indicator is at 0.08, trending downwards towards the central zero line.
CMF measures the buying and selling pressure in the market. When it falls toward the zero line, it indicates that buying momentum has weakened, indicating that market participants have lost confidence in the upward trend.
Furthermore, the setup of SHIB’s Moving Average Convergence Divergence (MACD) indicator also confirms this bearish outlook. As of press time, the coin’s MACD line (blue) is below its signal line (orange).
This indicator measures an asset’s price trend and momentum and identifies its potential buy or sell signals. When the MACD line falls below the signal line, it indicates a bearish trend and confirms the reversal of the uptrend. This suggests selling pressure is building and asset prices could fall further.
SHIB Price Prediction: Drop to $0.000020?
SHIB is trading at $0.000025down 4% in the past 24 hours. It remains above the key support at $0.000022. If SHIB breaks below this support, its price may drop further to $0.000020.
On the other hand, if profit-taking activity eases and memecoins witness a revival of new demand, it will Breaking the resistance at $0.000026 It regained eight-month highs of $0.000030.
Disclaimer
conform to trust project Guide, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult a professional before making any financial decisions. Please note that our terms and Conditions, privacy policyand Disclaimer Updated.
