Shiba Inu Price Could Fall After Brief Surge
Financial Analyst
- Market data showed a possible decline as investors tried to cash in their profits.
- SHIB may drop to $0.000014 due to the 90-day median coin age.
Shiba Inus are showing a reasonable price [SHIB]. The price of the token is up 12.77% in the last seven days. Those who held tokens during the price surge seem to be ready to take profits.
AskFX discovered this while examining exchanges’ order books. We observed using the bid-ask spread indicator that there were more bids than offers.
SHIB holders are ready to take profits
In the crypto world, “ask” means being willing to sell. “Bid,” on the other hand, means willingness to buy. Prices fall when the ask segment exceeds the bid segment. When the opposite occurs, prices rise.
Shiba Inu price might be falling despite recently hitting $0.000016 because market participants are more willing to sell.
Source: IntoTheBlock
The median coin age (MCA) is another metric that has shown that SHIB might be losing its grip on the uptrend. The MCA, as the name suggests, is the average age of all tokens on the blockchain.
The coin age is rising, which means that old coins are being moved from one wallet to another. This usually means that holders are ready to sell.
A drop in MCA indicates that holders are accumulating assets and not reinvesting them.
The 90-day MCA for the Shiba Inu network has increased from $33.60 to $35.10 in the last three days.
This meant that memecoin holders were moving their assets and making additional transactions.
There are other reasons behind the decline in network adoption
SHIB’s price could drop to as low as $0.00014 if this trend continues. SHIB network growth has also declined.
Network growth is the number of addresses making their first transaction on the blockchain. When it increases, it is an indication that the network has gained adoption.
Source: Santiment
A decline in adoption indicates low adoption. Shiba Inu has been affected by the latter, suggesting that price could also be a factor.
SHIB’s 30-day MVRV ratio has also increased. The MVRV ratio shows the profitability of a cryptocurrency. An increase in this ratio indicates that more holders have become more profitable.
A decrease in the other, on the other hand, indicates unrealized losses. The metric has been increasing recently, suggesting that SHIB’s price increase has caused more holders to become profitable.
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This price increase could have a negative impact on the token price in the short term.
Source: Santiment
However, the value remained negative, indicating that SHIB could be undervalued. This condition could lead to a higher value of the token in the short or medium term.
