Shiba Inu Price: Bottoming Out?
Shiba Inu (SHIB) price experienced an 8% intraday drop on May 31st, trading at $0.0000125 with $289 million in 24-hour volume. This decline mirrors the recent meme coin market crash, which saw a $10 billion loss in market capitalization within a week. Increased selling pressure from liquidations contributes to the bearish sentiment.
On-Chain Signals: A Potential Bottom?
Santiment's on-chain data reveals interesting trends suggesting a possible local bottom formation for SHIB. Two key metrics support this:
- Spiking Age Consumed: This metric surged to 580 trillion SHIB, its highest point since May 20th—a 1,500% increase from the previous day. This indicates significant movement of long-held (dormant) coins, potentially signaling the end of a major sell-off.
- Falling 30-Day MVRV Ratio: The 30-day Market Value to Realized Value (MVRV) ratio dropped to its lowest level since March, currently at -10%. This suggests that recent buyers are underwater, potentially nearing capitulation.
Historical Precedents
Historically, these combined metrics (spiking Age Consumed and a deeply negative MVRV) have preceded SHIB price rebounds. This pattern was observed on May 5th, 12th, and 30th, all followed by short-term rallies. However, it's crucial to remember past performance does not guarantee future results.
The Exchange Influx
Despite these positive on-chain signals, a recent influx of 2 trillion SHIB tokens to exchanges raises concerns about potential further selling pressure. This could hinder any potential recovery.
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Conclusion
While on-chain data offers a glimmer of hope for SHIB price recovery, the current market conditions and the significant amount of SHIB on exchanges inject considerable uncertainty. Investors should proceed with caution and conduct thorough due diligence before making any investment decisions.