Is Shiba Inu witnessing a price correction ahead of Shibarium launch
- SHIB and BONE registered price drops of 4% and 8% respectively, in the last 24 hours.
- Investors were selling their holdings, as evident from their on-chain metrics.
Shiba Inu [SHIB] ecosystem tokens were enjoying a comfortable bull rally for multiple days, even registering double digit gains. However, things changed drastically over the last 24 hours as a trend reversal happened.
Read Shiba Inu’s [SHIB] Price Prediction 2023-24
Not only SHIB, but Bone ShibaSwap [BONE] and Doge Killer [LEASH] witnessed considerable price drops. Interestingly, a few believed that this was a result of a false FUD ahead of Shibarium launch. A closer look at the ecosystem gave a better understanding of what was happening.
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Shiba Inu’s BONE takes the hardest blow
SHIB, the largest token in the Shiba Inu ecosystem, registered a price drop of over 4.5% in the last 24 hours. However, it was not the token that was most affected.
BONE’s price sank by more than 8% over the last day. At press time, it was trading at $1.50 with a market capitalization of over $344 million. Sadly, its trading volume went up by 40% during that period, which was bearish.
A look at BONE’s metrics revealed that investors chose to sell their holdings. This was evident from the dip in its supply outside of exchanges and a rise in the supply on exchanges. The price plummet also caused its 1-week price volatility to rise, which could cause trouble in the coming days.
SHIB has obstacles to overcome
SHIB bled a considerable amount of its market cap in the last 24 hours, which pushed its rank down on the list of the top cryptos. According to CoinMarketCap, at press time, SHIB was trading at $0.00001029 with a market cap of $6.1 billion, making it the 13th largest crypto.
The price plummet sparked fear among investors as bullish sentiment declined by 32% in the last 24 hours. Moreover, its social engagement also fell.
A reason behind the declining price trend was the increase in selling pressure. CryptoQuant’s data revealed that SHIB’s net deposit on exchanges was high compared to the last seven-day average, indicating that investors were selling the memecoin.
Another negative metric was its active addresses, which were dropping. The price drops also caused Shiba Inu’s MVRV Ratio to sink. Additionally, whale activity around SHIB declined as its price went down.
The bad news was that the declining price trend might continue over the coming days.
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Coinglass’ chart pointed out that SHIB’s open interest was increasing. A rise in the metric indicates that more capital is entering the market. This suggests that the possibility of the current price trend continuing is high.
Among the Shiba Inu tokens, LEASH seemed to have held its ground relatively well, as its price only dipped marginally in the last 24 hours. At the time of writing, it was trading at $564.22.