In the past 24 hours, Shiba Inu (SHIB), a leading meme coin, has experienced a 4% price increase. This surge mirrors an overall uptick in the cryptocurrency market. However, persistent bearish sentiment threatens this rally, suggesting that the increase might be short-lived.
On-chain and technical indicators hint that the current upward trend for Shiba Inu may quickly reverse if the broader market’s bullish momentum diminishes.
Recent data highlights net outflows from SHIB’s spot market. Investors appear increasingly inclined to sell their holdings. Today, a notable $3.2 million has withdrawn from the spot market. Over four consecutive days, the total outflows have reached $13 million.
In the context of net outflows, the scenario indicates that SHIB sees more selling or withdrawals than buying or deposits. This trend points to declining demand or waning investor confidence, potentially exerting downward pressure on prices. Persistent outflows signal a bearish outlook as investors prefer profit-taking over retaining their assets.
Analysis underscores a decline in SHIB’s holding time over the past week. According to data from IntoTheBlock, this period has decreased by 48% within seven days.
The holding time of an asset measures the duration coins remain in wallets before being sold or transferred. A reduction in this metric suggests mounting selling pressure among traders. This trend conveys a bearish sentiment, further contributing to a decline in SHIB’s price.
Currently, SHIB trades at $0.000022, maintaining its position above the crucial support of $0.000021. Should bearish trends intensify, SHIB might experience a further decline, possibly touching down to $0.000019 if bulls struggle to defend this support.
On the flip side, an improvement in market sentiment may help Shiba Inu extend its rally, potentially pushing its price towards $0.000026.