Shiba Inu price recovery is likely, on-chain metrics suggest
- Shiba Inu witnessed a surge in market activity as the meme coin found new demand among crypto traders.
- SHIB token supply on top exchanges has declined over the past month to April 2021 levels.
- At the current price level of $0.000008, there is less selling pressure on the meme coin as nearly 60% addresses sit on losses.
Shiba Inu has observed a surge in on-chain activity since the end of June, with a rise in demand for the meme coin among market participants. The token’s supply on exchanges has also declined considerably, signaling a potential upcoming trend reversal in Shiba Inu’s price.
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Shiba Inu on-chain metrics signal recovery
Shiba Inu, the second largest meme coin in the crypto ecosystem, saw a considerable decline in its price since early June, when the US Securities and Exchange Commission’s (SEC), the country’s financial regulator, enforced its crackdown on crypto.
SHIB price nosedived 21% in the ten-day timeframe between June 5 and 15. SHIB price has recovered since then, climbing to $0.00000766 at the time of writing.
On-chain metrics like daily address activity and supply on exchanges have likely contributed to the price rally in SHIB.
Based on data from crypto intelligence tracker Santiment, daily active addresses (24-hour) consistently remained high for SHIB since the last week of June. This signals increasing demand for the meme coin and rising interest among market participants.
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Shiba Inu active addresses (24-hour)
Moreover, the supply on exchanges, an indicator that is useful to measure whether an asset is under selling pressure or not, shows a remarkable decline. The current SHIB supply on exchanges is 86.53 trillion, a level not seen sinceApril 2021. A low supply on exchanges implies that wallet holders have held SHIB off exchanges, meaning higher accumulation and thus less selling pressure.
If the supply on exchanges is low, there is less availability of SHIB to sell, translating to lower selling pressure and a wider room for a price recovery.
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SHIB supply on exchanges (current level previously seen in April 2021)
Key metric that supports SHIB price recovery
At the current levels, Shiba Inu price faces resistance at $0.000008, data from IntoTheBlock’s “In/Out of the money around price” (IOMAP) shows.
At prices below $0.000008, 57.6% SHIB tokens held in wallet addresses are underwater, sitting on unrealized losses. These tokens are less likely to be sold at prices below $0.000008 because these addresses would realize a loss if they did so.
57.68% Shiba Inu tokens are currently underwater
At the time of writing, SHIB price on Binance is $0.00000764. The meme coin has no significant resistances in its way to reach $0.000008. On a successful break past $0.000008, $0.000009 is the next level to watch out for.
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Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
