SHIB holders, read about THIS Shiba Inu ‘low’ before you make your move!

  • SHIB’s exchange reserve has dropped to a two-year low.
  • There is a rise in bearish sentiment in the SHIB market.

The total amount of Shiba Inu [SHIB] held across cryptocurrency exchanges has fallen to its lowest since March 2022, according to Glassnode’s data. 

Information from the on-chain data provider showed that SHIB’s exchange reserve has plummeted by 7% year-to-date. As of this writing, 147 trillion SHIB were held on exchange addresses.

Source: Glassnode

Before you make your move

A steady decrease in an asset’s exchange reserve often signals a decline in selling pressure.

However, due to the general market decline witnessed in the past few weeks, there has been a surge in bearish activity in the SHIB market.

For example, the coin’s Awesome Oscillator has posted only red upward-facing bars since the 10th of March. This indicator measures an asset’s market trends and momentum.

When its bars are red and facing upwards, they indicate a decline in bullish momentum and that the short-term moving average is lower than the long-term moving average. 

Confirming the bearish trend, a reading from SHIB’s Moving Average Convergence Divergence (MACD) indicator showed that the coin’s MACD line crossed below its signal line on the 14th of March.

This suggested the re-emergence of the bears, as the meme coin’s value has since dropped by 33%, per Coingecko’s data. 

A downward intersection of an asset’s MACD line with its signal line indicates a loss of bullish momentum and a potential increase in selling pressure.

Traders often interpret this as a cue to exit long positions and occupy short ones.

Further, the growth in bearish trend has led to a decline in demand for SHIB. AMBCrypto found that the coin’s Money Flow Index (MFI) trended downward and was under 50 at the time of writing.

This indicated a rise in the meme coin’s selling pressure.

Additionally, its Chaikin Money Flow (CMF), which measures the flow of money in and out of the SHIB market, was less than zero.

A SHIB value below zero is a sign of market weakness, as it indicates liquidity exit.

SHIB D1 TradingView Chart

Source: SHIB/USDT on TradingView

How much are 1,10,100 SHIBs worth today?

In SHIB’s Futures market, its Open Interest has declined by 36% since the 6th of March, according to Coinglass’ data.

This indicated that market participants have exited their positions without opening new ones due to the rise in bearish sentiments. 

Next: Dogecoin flips Cardano – Can devs finally come to the rescue of ADA’s price?

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