Price trends show a downward trend, with bears gradually gaining the upper hand.
As of now, Shiba Inu (SHIB) is trapped in a two-month range-bound predicament, and recent price fluctuations have further exposed the strong rise of bears.
The report indicates that whale selling pressure is significant, with SHIB having fallen below the midpoint of the $0.0000129 range. Compared to the peak of the range, the risk of falling towards the bottom is sharply increasing.
On-chain indicators hold hidden significance
From on-chain data, bullish strength continues to weaken. Despite ongoing whale sell-off news, the net position change on exchanges has remained negative since January, indicating that a large number of tokens are being withdrawn from exchanges, which may alleviate selling pressure.
However, Santiment data shows that the financing rate has fallen below zero, and open contracts continue to decline, indicating a strong bearish sentiment. Although active addresses experienced a brief surge in early May, they have since fallen again. Combined with the trend of tokens flowing out of exchanges, this may indicate investors accumulating chips.
Key indicators predict the future market direction
It is worth noting that the average coin age of Shiba Inu (SHIB) has not shown strong growth in the past month, contrasting sharply with the accumulation period from January to March.
The fluctuations in dormant circulation metrics suggest variations in on-chain selling pressure. The 30-day MVRV indicator has returned to the negative value range, which may signal that short-term selling is nearing its end, leaving room for subsequent consolidation and accumulation of SHIB.
