The price of Shiba Inu (SHIB) has dropped over 50% from its peak earlier this year, and recent on-chain movements suggest a potential third consecutive month of losses for SHIB holders.
Concerns arise as investors transfer 1 trillion SHIB into crypto exchanges, resulting in an increase in exchange supply and potential downward pressure on prices. Bearish traders dominate the Spot markets, with sell orders surpassing demand, indicating a market controlled by sellers.
The surge in SHIB tokens being deposited into exchange wallets has pushed the total SHIB Exchange Supply to a 50-day peak of 169 trillion. This increase in supply suggests that holders may be growing dissatisfied and seeking to exit their positions, putting further downward pressure on prices.
Furthermore, analysis of the order books from 16 crypto exchanges reveals that sell orders now dominate the SHIB Spot markets. Bearish traders have positioned active orders to sell 2.5 trillion SHIB, surpassing the corresponding 2.14 trillion SHIB in purchase orders. This shift in market dynamics suggests that bearish sentiment is prevailing, potentially intensifying selling pressure.
However, there is a possibility for a bullish reversal if SHIB manages to reclaim the resistance level at $0.00001. Nevertheless, with a large number of addresses having purchased significant amounts of SHIB at an average price of $0.000008, the selling pressure may outweigh buying demand, leading to a price retracement.
Source: BEINCRYPTO
