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Shiba Inu (SHIB) Long-Term Holders Are Selling, Is a Further Price Downswing Expected? 

2 mins
Updated by Ryan Boltman
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In Brief

  • SHIB moved sideways in reference to its price a week ago. 
  • Shiba Inu long-term holders are selling.
  • Shiba Inu network growth is in a steep decline.
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Shiba Inu is struggling to break out of its recent downswing.

On-chain data shows how the network growth decline and sell pressure from long-term holders could slow down SHIB price resurgence. 

Shiba Inu Network Is Not Growing

Holders of Shiba Inu have endured sideways movement by the popular meme coin in recent weeks. The recent decline in the network traction has cooled early signs of a potential price resurgence.

According to Glassnode, the number of new network participants joining the Shiba Inu network has been down since early February 2023.  

In the chart below, Glassnode reports that new wallet addresses created on the Shiba Inu network have declined from 4,575 on Feb. 4 to 1,696 addresses at the close of March 21.

Shiba Inu (SHIB) Network Growth. March 2023.
Shiba Inu (SHIB) Network Growth. March 2023. Source: Glassnode

When the number of new addresses on a blockchain network declines, it denotes dwindling interest in its core service offerings. Unless this trend is reversed, SHIB may struggle to find new demand in the coming weeks. 

Furthermore, the dwindling balances of long-term holders also validate the bearish outlook for SHIB. As reported by Santiment, the Mean Coin Age of SHIB tokens in circulation has plunged sharply.  

In the Santiment chart below, SHIB Mean Coin Age (90d) has dropped from 44.63 on Feb. 2 to 29.06 as of March 22. 

Shiba Inu (SHIB) Mean Coin Age, March 2023
Shiba Inu (SHIB) Mean Coin Age, March 2023. Source: Santiment

As noted, the Mean Coin Age (90d) data shows the average number of days recently traded tokens stayed in their current address. A sharp decline usually indicates a selling trend among long-term holders. 

The piling sell-pressure from long-term Shiba Inu holders could cause panic among crypto investors. This could trigger a further price decline.

Is $0.000008 the Next Price Stop For Shiba Inu? 

The Global In/Out Of Money (GIOMAP) data compiled by blockchain forensics firm IntoTheBlock indicates that SHIB could soon drop toward $0.000008. 

Having failed to break out of the $0.000011 resistance zone over the past week, SHIB holders can now expect a downswing toward $0.000008, the minimum price that 200,000 addresses paid for nearly 47 trillion SHIB tokens. 

Failure to hold this level could see SHIB slide further to reach $0.000006, where another 154,000 addresses that bought 53 trillion tokens can ease the slump. 

Shiba Inu GIOMAP Data March 2023
Shiba Inu (SHIB) GIOMAP data, March 2023. Source: IntoTheBlock

Still, the bulls could take charge again if SHIB breaks out of its current resistance zone at $0.000012. Where 138,000 addresses initially bought approximately 93 trillion tokens.

If this resistance is broken, SHIB can head on a prolonged upswing toward $0.000012. Where 100,000 addresses have purchased a combined 466 trillion SHIB tokens.

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Ibrahim Ajibade
Ibrahim Ajibade Ademolawa is an experienced On-chain research analyst who began his career in Commercial Banking. He has worked with several Web3 startups and financial institutions —analyzing technical concepts and spectacular events that link the DeFi and TradFi worlds. He holds a Bachelors’ Degree in Economics and is currently pursuing an MSc. in Blockchain & Distributed Ledger Technologies.
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