Journalist
Posted:
- The top 10 SHIB addresses have reduced their holdings on exchanges.
- However, SHIB could see a negative price correction.
Leading meme coin Shiba Inu [SHIB] has witnessed a decline in the supply held by the top ten wallets on the exchanges, according to data from Santiment.
Over the past 90 days, the coin has registered a 2% drop in supply from this cohort of investors on crypto exchanges.
Source: Santiment
When whales control a large portion of a cryptocurrency’s supply on exchanges, it is generally seen as a bearish indicator. This means there is a potential that these big bag holders could sell their assets and cause the price to crash.
However, the recent decline in SHIB’s exchange supply suggests the opposite. As whales withdraw their coins from the exchanges, they are essentially taking them out of immediate circulation, reducing the supply available for sale and potentially driving up the price.
But expect a dip in the short term
AMBCrypto assessed SHIB’s price movements on a daily chart and found that the altcoin was about to enter a bear cycle. This was based on the moving average convergence divergence (MACD) values of the currency.
At the time of writing, the MACD line was on the trend line and about to make a downward cross below it.
A MACD crossover below the trendline can be a bearish signal, indicating a possible weakening of upward momentum.
At the time of writing, SHIB has exchanged hands for $0.00001062, with the price up 4% in the last 24 hours. The price has risen by almost 10% in the past week.
Unless there is a positive change in market sentiment, further downward trend of SHIB’s MACD below the trendline could lead to recent gains being lost. This is because traders often interpret this downward crossing as a sell signal.
Some traders have already started selling their SHIB shares. The currency’s Money Flow Index (MFI) rested below the center line at 46.41. This was still falling at the time of writing, but this meant that selling pressure on the currency was gaining momentum.
How much are 1,10,100 SHIBs worth today?
Additionally, SHIB’s Aroon Up Line (orange) started a decline on December 17 and has fallen 35% since then.
At 64% at the time of writing, SHIB’s declining Aroon Up Line suggested that price growth was weakening, with the most recent high having been reached long ago.
Source: SHIB/USDT on TradingView
