The price of Shiba Inu (SHIB), the fierce competitor of Dogecoin (DOGE), has declined following Bitcoin’s (BTC) and the overall market downturn. What are the reasons behind the price drop in SHIB, the favorite meme token of investors? Let’s examine together!
Increased Selling Transactions in SHIB
In the cryptocurrency market, the increase in Bitcoin’s price was seen as an opportunity by investors, leading to a rise in selling transactions, which undermined confidence among holders and caused a decline. Generally, this situation in cryptocurrencies reflected proportionally in the token’s price as investors continued their selling transactions. If a similar situation is observed in SHIB, the meme token’s price may continue its downward trend.
Additionally, the total token supply on cryptocurrency exchanges reached a six-month high due to a sharp increase. Such situations may result from long-term holders transferring their tokens to exchanges for sale. According to recent data, in the last 48 hours, wallets on all cryptocurrency exchanges recorded an increase of more than 4.66 trillion SHIB. This supply of 103 million dollars resulted in selling transactions due to the aforementioned possible reasons.
Support Level in SHIB
The age consumption metric, an important metric in cryptocurrencies, recorded numerous increases. This measurement calculates the total lost days by multiplying the total supply moved by the total number of days since the last move. Considering all these data, the downward trend in SHIB can be seen as normal. Additionally, Shiba Inu’s price failed to exceed the 0.00002584 dollar level and experienced a decline due to consolidation between 0.00002267 dollars. According to cryptocurrency experts, the meme token is moving towards the crucial support level at 0.00002093 dollars, which has not been breached since April.
If the support level at 0.00002093 dollars in SHIB is broken downward, the cryptocurrency’s price may deepen its decline, reaching levels as low as 0.00002000 dollars. This level has not been seen in the meme token for several months. On the contrary, if the support region at 0.00002093 dollars successfully holds, the altcoin’s price may enter a recovery phase. In such a scenario, SHIB’s consolidation will continue, invalidating the downward thesis.
