Shiba Inu Price Insights:
- Shiba Inu (SHIB) price scored 16% gains in the last 10 days of October as bulls regained control of the markets.
- Amid the market rally, a number of Shiba Inu holders have been spotted making moves to potentially cash out.
- Key technical indicators are pointing toward a possible rejection at the $0.000085 range.
- Meanwhile, Shiba Inu (SHIB) price ended October strongly, scoring 16% in the last 10 days of the month. Recent on-chain movements provide vital insights into the impending SHIB price action.
Shiba made a significant leg-up in the last week of October 2023, as crypto investors switched attention to the memecoin markets. But will they book profits early or push for more gains?
Investors Deposit 2 Trillion SHIB Tokens into Exchange Wallets Within a Month
Shiba Inu’s price performance has improved significantly over the past week. However, recent on-chain movements suggest long-term holders booking profits could scuttle the price rally.
Over the past month, Shiba Inu investors have deposited a large chunk of tokens into exchanges and trading platforms. The CryptoQuant chart below shows that the inflows began on October 7, when total SHIB Exchange Reserves was at 168.5 trillion. But now, as of November 2, the total SHIB Exchange Supply has exceeded the 170 trillion mark.
This means investors have now deposited a staggering 2 trillion SHIB tokens into crypto exchanges with the last 25 trading days.
Exchange Supply metric shows the total deposits that investors currently hold in crypto exchange-hosted wallets. Typically, when exchange deposits increases during a bull rally, it signals that many investors are looking to exit early.
Hence, with Shiba Inu exchange supply now at a two-month peak, SHIB price will like experience some downward pressure in the coming days.
Some Investors Have Started Taking Profits
In further confirmation of the potential bearish outlook, some SHIB long-term holders were spotted booking profits on Thursday.
As seen below, Shiba Inu Age Consumed spiked to 437 trillion on November 2. And notably the when SHIB Age Consumed reached similar levels on October 8 and September 4, a major price retracement followed.
Age Consumed is an important on-chain metric that captures changes in the trading activity of long-term holders. It is derived multiplying recently-traded tokens by number of days since they were last moved.
Hence, the noticeable increase in Age Consumed spotted on Thursday is a clear indication that that many long-term SHIB holders have started cashing out.
Combined with the rising exchange reserves if the long-term holders intensify the selling frenzy, it could pose significant risk to the ongoing SHIB price rally.
SHIB Price Forecast: Sharp Correction Toward $0.000006?
SHIB is currently trading around $0.000008, and based on the provided on-chain indicators analyzed above, a mild-retracement seem likely.
Shiba Inu price below the 200-day Simple Moving Average, indicating a short term “Sell” signal.
In the daily time frame, the upper Bollinger Band indicates that ETH initial resistance is at $0.000083. A decisive breakout above that level will likely lead to a larger upswing toward the upper band at $0.00001.
On the downside which is more likely, the lower Bollinger Band is at $0.0000075. Notably this is also a key psychological support level. And if SHIB price sinks below that level the bears could seize control of the market.