Shiba Inu (SHIB) price ended October strongly, scoring 16% in the last 10 days of the month. Recent on-chain movements provide vital insights into the impending SHIB price action.
Shiba Inu made a significant leg-up in the last week of October as investors turned their attention to the memecoin markets. But will the current holders book profits early or push for more gains?
Investors Deposit 2 Trillion SHIB Tokens Into Exchanges
Over the past month, Shiba Inu holders have continued depositing more tokens into exchanges. The CryptoQuant chart below shows that they moved 2 trillion SHIB tokens into crypto exchanges between October 7 to November 2.
The chart below depicts that the inflows began on October 7, when the total SHIB supply on Exchanges was 168.5 trillion. As of November, the total SHIB Exchange Supply has now surpassed the 170 trillion mark.
This means investors have moved 2 trillion SHIB tokens into crypto exchanges in less than a month.
Exchange Supply provides a daily snapshot of the total deposits that investors currently hold in crypto exchange-hosted wallets. Typically, when investors’ exchange deposits increase during a bull rally, it signals that they may be looking to exit early.
Hence, with SHIB market supply at a two-month peak, SHIB price will likely experience more downward pressure in the days ahead.
Some Investors Have Started Booking Profits
In further confirmation of the potential bearish outlook, many SHIB long-term holders were spotted moving their tokens on Thursday.
As seen below, Shiba Inu Age Consumed increased to 436.88 trillion on November 2. Notably, the last time SHIB Age Consumed reached similar levels was October 8 and September 4, respectively. And on both occurences were followed by a major price retracement.
Age consumed is a vital on-chain metric that tracks changes in the trading activity of long-term holders. It is derived by multiplying recently traded tokens by the number of days since they last moved.
Typically, a noticeable increase in age consumed during a rally suggests that many long-term SHIB holders have started cashing out.
In summary, the rising exchange reserves coinciding with long-term holders cashing out will likely pose a significant resistance to the ongoing bullish recovery.
SHIB Price Prediction: Sharp Retracement Toward $0.000006?
SHIB is currently trading around $0.000008, and based on the provided on-chain indicators analyzed above, a significant retracement could follow.
The Global In/Out of Money Around Price (GIOM) data, which depicts the entry price distribution of current SHIB holders, also supports this prediction.
It, however, shows that there’s a major support cluster of holders that bought SHIB around the $0.000006 level.
As shown below, 175,480 addresses had bought 56 trillion SHIB at the maximum price of $0.000006. They could trigger an instant rebound if they hold.
But if the bears break down that support cluster, Shiba Inu could eventually drop below $0.000006.
On the upside, the bulls could regain control if the SHIB price can reclaim $0.00001. But in that case, 405,510 addresses had bought 285.4 trillion SHIB tokens at the average price of $0.00001. If these Shiba Inu investors book profits as predicted, they will likely trigger an instant price correction.
But if the resistance cluster fails to hold steady, SHIB could edge closer to $0.000014.
Read More: Top 11 Crypto Communities To Join in 2023
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.