The craze for Meme Coin over the past weeks has pushed the Shiba Inu (SHIB) price to an eight-month high, reaching $0.000030 on November 12. With this growth, a significant portion of the SHIB supply is currently profitable.
However, as market sentiment changes, many Shiba Inu Holders are now choosing to profit by selling their SHIB coins.
Shiba Inu Owner Selling for Profit
According to IntoTheBlock’s Global In/Out of the Money indicator, there are 829 trillion SHIB coins in 851K addresses, accounting for 62% of the total number of Meme Coin Holders, which are “profitable”.
An address is considered “profitable” when the current market price of the assets it holds is higher than the average purchase cost of the Tokens in that address. This shows that the owner will realize a profit if he sells the assets he holds at the current market price.
On the contrary, 82.39 trillion VND SHIB held by 398K addresses are “losing money”. These are addresses currently holding coins in a state of capital loss.
With 62% of holders now in profit, profit-taking has resumed. This is shown by SHIB’s falling Chaikin Cash Flow (CMF) indicator. As of the time of writing, this indicator is at 0.08, trending down to the central level of 0.
CMF measures market buying and selling pressure. When it falls to zero, it is a sign that buying momentum is weakening, suggesting that market participants are losing confidence in the uptrend.
Additionally, the configuration of SHIB’s moving average crossover (MACD) indicator confirms this negative outlook. At the time of reporting, the coin’s MACD line (blue) was below the signal line (orange).
This indicator measures the price trend and momentum of an asset, identifying potential buy or sell signals. When the MACD line falls below the signal line, it is a sign of a downtrend and confirms a reversal of the uptrend. It shows that selling pressure is increasing, and the asset’s price may continue to decline.
SHIB Price Prediction: Drop to 0.000020 USD?
SHIB is trading at $0.000025, marking a 4% decline over the past 24 hours. It remains above the critical support at $0.000022. If SHIB falls below this support, a further decline to $0.000020 is possible.
Conversely, if profit-taking eases and Meme Coin sees a renewed surge in demand, it will overcome resistance at $0.000026 to reclaim its eight-month high of $0.000030.