Leading meme cryptocurrency Shiba Inu (SHIB) has seen a 4% price increase over the past 24 hours, reflecting an upward trend in the broader cryptocurrency market. However, this price increase may be short-lived as negative sentiment still dominates this Meme Coin.
Technical indicators and on-chain data suggest that the Shiba Inu price rally could reverse as the general market’s upward pressure weakens.
Shiba Inu Recorded Capital Outflows As Selling Pressure Intensifies
There has been a capital outflow from SHIB’s spot market, showing that investors are increasingly choosing to sell rather than hold. Just today, $3.2 million USD left the Meme Coin spot market as holders sold off their coins. This is the 4th consecutive day that capital outflows occurred from SHIB’s spot market, a total of 13 million USD was withdrawn.
When an asset sees outflows from the spot market, it means more assets are being sold or withdrawn than are being bought or deposited. This indicates reduced demand or lack of investor confidence, which could lead to downward price pressure. As with SHIB, continuous capital outflows point to negative sentiment, making investors prefer to lock in profits rather than hold on to their coins.
Notably, TinTucBitcoin’s assessment of SHIB’s on-chain activity confirmed a decline in coin holding time over the past week. According to IntoTheBlock, this has dropped 48% in the last seven days.
An asset’s holding period measures the average length of time tokens are held in a wallet before being sold or transferred. When the index falls, it shows increased selling pressure among market participants. This scenario reflects negative sentiment towards the asset and contributes to its price decline.
SHIB Price Forecast: Can Bulls Defend 0.000021?
SHIB is currently trading at $0.000022, holding above the $0.000021 support level. However, as bearish pressure increases, SHIB could see a drop to this support level. If the bulls fail to defend, the downtrend could accelerate, pushing SHIB price down to $0.000019.
Conversely, if market sentiment turns positive, the Shiba Inu rally could continue towards $0.000026.