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- Shiba Inu supply on exchanges has skyrocketed in the past two days, hitting a six-month high as whale wallets dump the meme coin to offset losses and clock profits.
- On-chain data also shows that coins held for the longest periods have also started moving, showing that some long-term holders are getting jittery, which signals upcoming bearish momentum.
Shiba Inu has doubled in value since the turn of the year, but judging by its latest market and on-chain metrics, the second-largest meme coin could be heading into a major correction as some of its biggest backers start preparing for a selloff.
SHIB trades at $0.00002182, dipping 1.3% in the past day for a $12.9 billion market cap. Its trading volume, however, rebounded by 30% to hit $752 million in the past 24 hours, edging past the red-hot Notcoin and miles higher than established projects like Cardano and Chainlink.
Since January, Shiba Inu has gained 111%, outpacing most top cryptos—Bitcoin, for instance, has only gained 60.5%, while Ethereum is up 55%. It has also had a better year than its main meme coin rival, DOGE, which gained 56% but pales in comparison to the flashier meme coins like PEPE and WIF, which gained 900% and 1600%, respectively.
However, Shiba Inu’s fortunes could take a turn for the worse. Data from Santiment shows that this week, SHIB supply on exchanges has seen a sharp spike, hitting a six-month high.
A rise in the net flow into exchanges is a bearish signal, showing that more holders are readying to sell their tokens. This inflow also creates selling pressure that results in the suppression of an asset’s price.
Even more concerning is an assessment of the long-term holders of the meme coin. Santiment data shows that long-term holders have been moving their coins, with the platform’s age-consumed metric spiking this week. This metric is a product of the number of days a token has been held with the total supply moved. A spike means that the number of coins moving is surging parabolically, or the wallets that have held the token for several months are moving their coins.
These metrics are the last thing Shiba Inu holders want to hear. The token has lost over 13% in the past day, dipping below its 100-day exponential moving average (EMA). The next significant support is at $0.000019. This level is critical for the token and could provide the perfect base for a rebound. However, if breached, the meme coin could hit fresh lows this month.
However, a recent reawakening of meme coins, led by the epic rise of Iggy Azalea’s MOTHER, could benefit Shiba Inu. As Crypto News Flash reported, MOTHER has proven controversial and sparked heated exchanges between crypto leaders, with many criticizing rapper Azalea for her disrespect of Vitalik Buterin.
