Buying pressure among Shiba Inu investors has weakened since its price hit an intraday high of $0.00001406 on Saturday.
With the price at $0.00001304 at the time of this report and hovering just above a critical support level of $0.00001295, SHIB appears to be poised for further declines in the short term.
SHIB investors are seeking short-term profits
SHIB investors have reduced their holding time, a clear sign that bearish sentiment around the memecoin is growing. Data from IntoTheBlock shows that the average holding time for traded tokens plummeted 78% in the last seven days.
SHIB Transaction Holding Time. Source: IntoTheBlock
This sharp decline suggests that investors are increasingly choosing to sell or move their SHIB tokens quickly to secure recent gains, rather than holding them for long-term profit.
When the holding time of an asset decreases, its investors are less confident about its future value and are more focused on short-term profits or minimizing losses.
In the case of the memecoin, the trend confirms that many investors are reacting to the recent price volatility, withdrawing earlier and contributing to increased selling pressure in the market.
Additionally, the drop in SHIB whale activity during the analysis period exacerbates this bearish outlook. According to IntoTheBlock, net flow from major investors of the memecoin plummeted 24% in the last seven days.
Net Flow of Major SHIB Investors. Source: IntoTheBlock
Large investors are whale addresses that hold more than 1% of an asset's circulating supply. Their net flow measures the difference between the amount of assets they buy and sell over a specified period.
When this increases, these large investors are accumulating the asset by buying more than they sell.
On the other hand, when the net flow of whales is negative, these investors are disposing of their positions by selling more tokens than they buy. This behavior reduces the upward buying momentum that whales typically provide, leaving SHIB more exposed to market volatility and bearish trends.
SHIB is at risk of falling to $0.00001167
The decline in support from major SHIB investors and shorter holding times from average investors suggest a potential continuation of the downward price movement. In this case, the memecoin risks falling below $0.00001295 to reach $0.00001167.
SHIB Price Analysis. Source: TradingView
However, if new demand arises, SHIB could reverse its decline and rise to $0.00001385.
The article 'Shiba Inu Holding Drops and Token Hits New Lows' was first seen on BeInCrypto Brazil.
