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HomeCrypto3 reasons to stay away from SHIB at this time

3 reasons to stay away from SHIB at this time

Shiba Inu (SHIB) price is fluctuating around 0.025 USD and the trend is still unknown. Onchain metrics show clear signs of bearish investor sentiment, which is a telltale sign of a potential downtrend.

Shiba Inu investors can hardly HODL

SHIB’s 24-hour Active Addresses metric plummeted from 16,770 on May 22 to 6,852 on May 30. The decline in the number of investors interacting with the Shiba Inu blockchain shows that investors Investors are not interested in this memecoin at the current price.

SHIB’s 24-hour operating address. Source: Santiment

Additionally, SHIB holders are actively taking profits, as indicated by the rising Net Profit/Loss (NPL) indicator. Following a 32% increase in token price over the past two weeks or so, there have been three significant increases in NPL, indicating aggressive profit-taking, reinforcing SHIB’s bearish outlook.

Furthermore, the SHIB supply held on exchanges has also increased from 74.56 trillion to 76.87 trillion, worth nearly 76 million USD. This behavior shows that holders are uncertain about the future and may be looking to dump tokens in the event of a panic sell-off.

NPL and SHIB supply on the exchange. Source: Santiment

Finally, the Whale Transaction Count (WTC), transfers worth $100,000 or more, of Shiba Inu also jumped during the recent rally, suggesting that institutional investors are also looking to sell.

WTC of SHIB. Source: Santiment

Overall, the SHIB price outlook looks bleak, at least in the short term. Although the technical outlook suggests recovery potential, investors should remain cautious. Because liquidity is present on both sides of the consolidation process, it is difficult to determine the direction of SHIB’s price movement.

In the immediate future, SHIB can sweep buy-side liquidity above 0.0295 USD before sliding down to capture sell-side liquidity below 0.02 USD. If it can rebound from this level, SHIB has a chance to visit the $0.0315 barrier again, marking a 45% increase.

SHIB 12-hour price chart. Source: TradingView

You can see coin prices here.

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

Itadori

According to FXStreet

Mark Tyson
Mark Tyson
Freelance News Writer. Always interested in the way in which technology can change people's lives, and that is why I also advise individuals and companies when it comes to adopting all the advances in Apple devices and services.
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