Whales take SHIB off exchanges – Can it change memecoin’s price prediction?
- Top 10 SHIB addresses have reduced their holdings on exchanges.
- SHIB, however, might see a negative price correction.
Leading meme coin Shiba Inu [SHIB] has witnessed a decline in its supply held on exchanges by its top ten wallets, according to data from Santiment.
In the past 90 days, the coin has recorded a 2% decline in the supply held by this cohort of investors on crypto exchanges.
Generally, when whales hold a large portion of a cryptocurrency’s supply on exchanges, it is seen as a bearish indicator. This means that there lies a potential that these big bag holders might sell their holdings and crash the price.
However, the recent decrease in SHIB’s exchange supply suggests the opposite. With whales moving their coins off exchanges, they are effectively taking them out of immediate circulation, reducing the available supply for selling and potentially pushing the price up.
But expect a dip in the short-term
AMBCrypto assessed SHIB’s price movements on a daily chart and found that the altcoin might be gearing to commence a bear cycle. This was based on the readings from the coin’s Moving Average Convergence Divergence (MACD).
At press time, the MACD line was positioned on the trend line and was poised to make a downward cross below it.
A MACD crossover below the trend line can be a bearish signal, indicating a potential weakening of upward momentum.
As of this writing, SHIB exchanged hands at $0.00001062, with a 4% price rally in the last 24 hours. In the last week, its price has grown by almost 10%.
Unless there is a positive change in market sentiment, the further downtrend in SHIB’s MACD below its trend line might cause it to lose recent gains. This is because traders often interpret this downward intersection as a sell signal.
Some traders have already begun to sell their SHIB holdings. The coin’s Money Flow Index (MFI) rested below its center line at 46.41. Still declining at press time, this meant that selling pressure on the coin was gaining momentum.
How much are 1,10,100 SHIBs worth today?
Further, SHIB’s Aroon Up Line (orange) initiated a decline on 17th December and has since fallen by 35%.
At 64% at press time, SHIB’s declining Aroon Up Line suggested that the price growth was weakening, and the most recent high was reached a long time ago.