- Shiba Inu slipped under the mid-range level and did not offer a buying opportunity
- High on-chain activity recently could be a sign of accumulation
Shiba Inu [SHIB], at the time of writing, was trading within a two-month-old range formation. In fact, its price action over the past few days suggested that bears have been gaining dominance.
A recent report also highlighted heavy sell pressure from some whales.
Source: SHIB/USDT on TradingView
The memecoin fell below the mid-range level at $0.0000129. The inability to defend this support meant that SHIB is more likely to fall towards the range lows, than push towards the range highs.
Additionally, the crypto’s on-chain metrics mostly reflected a lack of strength from the bulls too.
Gauging market sentiment and Shiba Inu holders’ behavior
Source: Glassnode
Although it was reported that whales were aggressively selling Shiba Inu, the exchange net position change has been negative since January.
This implied that more tokens have been leaving exchanges – A sign of reduced sell pressure and more accumulation. It saw high coin flows to exchanges in December, something that marked the rally’s top.
Source: Santiment
The funding rate data on Santiment revealed that the past few days saw a hike in bearish sentiments, with the funding rate dropping below zero. The Open Interest has also fallen since 26 April – A sign of dwindling bullish conviction.
The active addresses metric saw a surge in early May, but the activity has died down once more. Consistently high activity might be indicative of demand, with sporadic spikes in activity more likely to point towards selling. Combined with the exchange outflows, it could be a sign of accumulation.
Source: Santiment
Finally, the mean coin age has lacked a strong uptrend over the past month, unlike the January-March stretch. Back then, the steady northward march of the MCA signaled network-wide accumulation.
The dormant circulation saw a few hills form on the metric to reflect a hike in token movement, marking small waves of selling on-chain. The 30-day MVRV was back in negative territory. This could be an early sign that selling pressure from short-term holders was at an end. This could give the memecoin time for consolidation and accumulation.