Interest in the memecoin sector has been relatively low in recent months. Due to the ongoing war in the Middle East, investors have changed their risk appetite and Bitcoin, which is considered safer, has become a preferred option. This indicates that the lack of interest in the memecoin sector could increase further, and as a result, the stagnation for SHIB may continue amid the ongoing upward movement.
Based on the indicators, it appears that Shiba Inu holders aim to make quick profits. Over one trillion SHIB tokens have been transferred to cryptocurrency exchanges in just three weeks. The market supply of SHIB appears to be high.
According to CryptoQuant, Shiba Inu Exchange Reserves reached 170 trillion SHIB on October 17, marking the peak in 60 days, before experiencing a slight decrease to 169.4 trillion SHIB on Friday. The influx into exchanges that started on October 8 brought the total SHIB Exchange Supply to the peak of 169 trillion SHIB, the highest in 50 days.
The current trend in SHIB Transaction Count revealed another important information. This trend indicated that the price performance of SHIB was not good. According to CryptoQuant data, Shiba Inu did not experience a significant increase in network activity this week. The strange thing was that despite the increase in the price of Shiba Inu, there was a decrease in daily transactions.
The graph below reflected that the 4,218 SHIB Transaction Count on October 18 was the lowest level since May. This indicates that the 3% price increase of Shiba Inu was related to the overall market structure rather than its own performance.
According to the latest trend data, it is not very likely that Shiba Inu will surpass the $0.000008 resistance level. Another graph indicating this is the Global In/Out of the Money (GIOM) graph, which shows the distribution of entry prices by Shiba Inu holders. As seen in the graph, 299.6 trillion SHIB was purchased at a minimum price of $0.000008 by 430,400 wallets.
However, if the bulls gain strength due to the rising wave felt in the overall cryptocurrency markets, the price of Shiba Inu may rise to $0.000010. On the other hand, if the SHIB price falls below $0.00005, the bears may deepen the decline. As mentioned above, if investors aim to make early profits as predicted, the price of SHIB may likely drop to the $0.00005 level.