Shiba Inu price plunged below the $0.000022 mark on June 12, it lowest in 40-days, long-term holders’ reaction could further delay a SHIB rebound phase.
Shiba Inu Price Trending at 40-Day Lows
Memecoins received a fair amount of traction as the crypto markets entered a consolidation in recent weeks. But interestingly, a rare trading pattern has emerged which has seen investors shift focus toward mid-range memes at the expense of mega-cap assets like Shiba Inu (SHIB) and Dogecoin (SHIB).
Shiba Inu Price Action (SHIB/USD) | TradingViewThe chart above shows that Shiba Inu’s ongoing price correction is now approaching risky zones. At the time of writing on June 12, SHIB price has now declined by 29% since the downtrend began around May 29.
Curiously, both SHIB, DOGE, the two largest memcoin projects have been stuck in a downward trajectory since the last week of May. Meanwhile the likes of PEPE scored new all-time highs, while Floki Inu (FLOKI) also recorded significant gains in the aftermath of the Ethereum ETF approval.
However, as Shiba Inu price drops to historic lows, on-chain data shows that existing holders are now in panic mode bracing up for another wave of sell-offs.
SHIB Long-term Holders Bracing Up for Another Selling Frenzy
After nearly two weeks of intense bearish pressure, SHIB sellers are not showing fatigue signals. If sustained, this move could possibly spark another wave of sell-offs in the days ahead.
Santiment’s Age Consumed chart tracks the intensity of selling pressure coming from long-term investors. It multiplies the total daily number of SHIB tokens traded by the number of days since they were last moved.
Essentially the Age Consumed metric spikes when a large number of long-term holders are actively selling, and vice versa
Shiba Inu price vs SHIB Age Consumed | Santiment
As illustrated above, Shiba Inu Age Consumed hit 3465.6 trillion on June 11, sparking fears of another sell-off wave ahead of the next US Fed rate decision slated for Wednesday.
A closer look at the chart shows that the latest SHIB Age Consume figure is singificanly higher than the previous peaks observed in April and May 2024 respectively.
As stated above, such large spikes in Age Consumed appear when a large number of previously long-held tokens moved to new addresses within in given day.
Notably, SHIB price has often recorded major downside whenever there’s a considerable increase in Age Consumed as observed on June 7 and May 29 respectively.
With Shiba Inu prices now trending at 40-day lows, many long-term holders are now looking exit to avoid larger losses.
Shiba Inu Price Forecast: $0.000020 Support in Peril
Drawing insights from the Shiba Inu on-chain data analysis above, SHIB price could be on the verge of a major sell-off phase if the spikes in long-term holders’ selling activity persists.
The Bollinger band technical indicator also affirms this pessimistic Shiba Inu price forecast.
Shiba Inu Price Forecast | SHIB/USD
As seen above SHIB price is now on the verge of tumbling below the critical support level at $0.0000217. As long-term investors increased the selling activity on June 11, other strategic investors within the ecosystem could consider it panic signal that more downsizing could ensue in the days ahead.
In effect, SHIB price now looks likely to tumble towards the $0.000020 area support level as the June 2024 unfolds.
This article was originally posted on FX Empire
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