Shiba Inu (SHIB) trades at $0.00000880 with a bullish bias as buyers fight to defend a crucial support level. Long-term suppliers suddenly became active moving around more than 20 trillion SHIB, despite the investors being under water. This could be a sign that investors have decided to count their losses, which is not good for Shiba Inu price.
On-chain Metrics Show Growing Investor Concerns About SHIB
Shiba Inu displays weakness as bearish clouds from its recent price action still hover above it. Over the last week, on-chain performance of the meme coin explains growing investor performance about their returns.
This is made evident by the age-consumed metric by Santiment. According to the on-chain data analysis firm, this metric shows the amount of tokens changing addresses on a certain date, multiplied by the time since they last moved.
Spikes on the graph signal a large amount of tokens moving after being idle for an extended period of time.
In the case of SHIB, the surge in this metric on May 16 reveals the number of days being consumed was 4860 trillion days, which is a good sign.
Shiba Inu Age Consumed Chart
This could only mean two things. First, long-term holders are anticipating losses in the near future. This is because selling from the most loyal cohort of investors of any asset is not a good sign. Secondly, these investors have already realized losses, so they may want to offload the token to avoid further losses.
The awakening of the long-term addresses was noted on the daily on-chain transaction chart with a long red bar on May 16, the largest seen since late March.
The bar indicates that the transactions in losses were more than the transactions in profit on the day by a ratio of 1:20, as nearly 20 trillion SHIB worth $180 million were moved around despite investors being underwater.
Shiba Inu Daily On-chain Transaction Volume
Therefore, the intensity of bearishness across the network means that Shiba Inu price might take a few days before recovery.
Shiba Inu Price Sealed In A Downtrend
After setting a swing high at $0.00001188, rejection by the $0.000012 psychological level sent SHIB tumbling toward the $0.00000887 support wall. This price action saw the “Dogecoin killer” record a series lower highs and lower lows leading to the appearance of a descending parallel channel on the daily chart.
This means that as long as SHIB price continues to trade within the confines of the channel, it will continue to drop.
The Relative Strength Index (RSI) shows that there are more SHIB buyers than the sellers in the market right now. The price strength at 29 reinforced the bears’ grip on the price.
The Moving Average Convergence Divergence (MACD) indicator was moving below the zero line in the negative region with the 12-day Exponential Moving Average (EMA) still under the 260-day EMA. This suggested that the market sentiment was still negative, adding credence to the grim outlook.
As such, increased overhead pressure could see SHIB drop to produce a daily candlestick close below $0.00000860, embraced by the middle boundary of the descending channel.
Below that, the next logical move would be toward the lower boundary of the channel at $0.00000790, representing a 10% decline from the current price.
SHIB/USD Daily Chart
On the upside, the RSI at 29 showed that SHIB is currently oversold. This implied that the price of the dog-themed coin may be ready for a bounce back as seller exhaustion kicks in and late investors get in on the dip.
Such a scenario could see Shiba Inu rise to confront resistance from the upper boundary of the prevailing chart pattern at $0.00000905. Shattering this barrier would bolster the price above the $0.00000945 major resistance level to tag the SMAs above that before returning to the $0.00001216 range high.
