Known as the “Dogecoin Killer”, the Shiba Inu meme coin has seen notable ups and downs in recent days following the news of Shibarium. Recently, the Shiba Inu community has been filled with positive news about the relaunch of Shibarium, the Layer 2 scaling solution. However, despite the hype, the price of SHIB has remained under bearish dominance. In addition, declining activity in the chain has led to fears that selling pressure will intensify in the coming days.
SHIB’s cash-out trade on the exchange hits its lowest point in two years
The launch of Shibarium fell short of holders’ expectations as there were setbacks. As a result, SHIB, the flagship of the Shiba Inu ecosystem, failed to respond positively. However, with the Shibarium relaunch, the scenario has changed somewhat as the price of SHIB recorded small increases on the price chart from the robust support region.
However, the surge in bullish activity could be transient as declining indicators within the chain point to growing sell-off sentiment among investors. According to data from CryptoQuant, there has been a significant downturn in SHIB’s withdrawal transactions.
This measure has been on a downward trajectory for several years and has now reached its lowest point in two years. Currently, SHIB’s withdrawal transactions stand at around 604, a level not seen since May 2021.
High withdrawal levels generally indicate high investor confidence, as they prefer to hold their assets for the long term rather than trade them. Conversely, low levels indicate that investors are holding their assets on the exchange and may be preparing to sell.
When more tokens are held on the exchanges, it usually means that investors will be ready to sell in no time. This creates selling pressure, which can cause a downward price spiral.
What’s next for the price of SHIB?
Shiba Inu has been fluctuating between the robust USD 0.0000087 resistance level and the USD 0.0000077 support for several days now. However, after Shibarium’s relaunch, there is a spike in buying activity near the support zone, with buyers aiming for an uptrend going forward. At the time of writing, SHIB price is trading at $0.00000835, up more than 3.3% from yesterday’s price.
Currently, SHIB bulls are trying to break the consolidation by rising above USD 0.0000088. To initiate a solid uptrend, they need to quickly send the price above the 38.2% Fib channel. If reached, it could set the stage for a rally towards the pivotal point of $0.00001043. However, sellers are likely to cause a fierce fight near this level.
However, the EMA lines are still in a downtrend, and the price could soon face a sharp correction near the immediate resistance line. If this happens, bears will aim to push the price below the $0.0000078 mark to solidify their control and trigger a consolidation.