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Shiba Inu (SHIB) Bears Appear in Control of Price Action

2 mins
Updated by Ali M.
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In Brief

  • Shiba Inu price closed February in a weak position, losing around 11% in market value in the last seven days.
  • Crypto investors continue to deposit tokens onto exchanges, signaling potential sell action.
  • SHIB price is expected to drop further in March 2023 as a slump in network growth enters the third consecutive month.
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Shiba Inu network growth closed negative for the second consecutive month. Will retail interest gain momentum in March 2023 and help SHIB surpass its February performance?

Shiba Inu Holders Brace For Sell Action

Shiba Inu (SHIB) delivered a 23% price slump in February, cooling off its strong start to 2023. Following a brief resurgence in mid-February, SHIB has re-entered the bearish zone. Holders appear to be positioning for some sell action in the coming days. 

Illustrated below, daily active deposits by SHIB holders have risen compared to values recorded ahead of the late December rally.

Shiba Inu SHIB Active Deposits
SHIBA INU Active Deposits. March 2023. Source: Santiment

According to Santiment, a pictorial comparison of active deposits to active withdrawals data shows that more holders transfer their SHIB into exchanges than those withdrawing it. Historically, Shiba Inu price tends to fall when deposits persistently outpace withdrawals. 

If the SHIB holders continue to deposit more tokens on exchanges in the coming days, the meme coin is likely to make a slow start to March 2023. 

Another on-chain data that flashes a bearish signal is the persistent decline in network activity. After peaking at 6,000 on January 18, the number of new SHIB addresses created has continued to hit new lows, closing February at 1,800.

Shiba Inu SHIB Network Growth
SHIBA INU Network Growth. March 2023. Source: Santiment

This downward trend in network growth is a critical metric that shows that SHIB has not been attracting new crypto market participants in recent weeks. For the current bearish price action to be reversed, SHIB has to find new demand in March 2023. 

SHIB Price Prediction: Tough Times Ahead

Regarding price action, the distribution of holders who bought SHIB around the current prices can also be seen as negative. 

The Global In/Out of Money Around Price (IOMAP) by IntoTheBlock shows that the market can anticipate a further decline if SHIB breaks below its current support at $0.000010. The next area of demand could be around $0.000006, where 164,000 addresses bought nearly 55 trillion SHIB. 

Shiba Inu SHIB Price Prediction
SHIBA INU (SHIB) In/Out of Money Around Price. March 2023. Source: IntoTheBlock

Still, if Shiba Inu price rises above the $0.000017 resistance, this could trigger a rally toward $0.000035. This could be easier said than done with more than 99,000 addresses bought over 468 trillion SHIB at an average price of $0.000017.

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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.

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.