Shiba Inu’s (SHIB) volatility has led a significant portion of meme token holders to find themselves in a new position where they are no longer underwater. The term “underwater” refers to a situation where a token’s current price is lower than the price at which it was purchased, resulting in losses for investors.
Movements in SHIB!
For a long time, over 80% of SHIB holders were in the red. However, according to Chain Afirk, an African web3 community on Twitter, 33.03% of SHIB holders are now in profit. Data obtained by Chain Afrik from IntoTheBlock shows that there are 421,850 SHIB addresses within the money. The increase could indicate a turning point for the meme coin community as more break-even holders emerge.
As SHIB’s price trajectory changes, long-term holders are starting to wonder if they should continue moving their assets to profitable zones. According to Santiment, SHIB had a net inflow of 361.4 million in the last 30 days. Inflow represents the number of tokens moving from non-exchange wallets to exchange wallets. Conversely, outflow measures the number of tokens moving from exchange wallets to non-exchange wallets.
Millions of Dollars Exiting SHIB!
At the time of writing, SHIB had a net outflow of 8.18 million from exchanges. Analysts generally state that a higher inflow than outflow could imply that an asset is not far from a major sell-off. In terms of Network Value to Transactions (NVT) signal, Glassnode data shows that the metric rose to 170.52. The NVT signal uses the 90-day moving average of daily transaction volume to determine if a token is seeing premium transactions.
Such a high NVT signal could indicate that the market value of Shiba Inu surpasses its transaction volume. Therefore, SHIB may currently be overinflated and at a market peak. Additionally, the 30-day Market Value to Realized Value (MVRV) ratio increased to 6.71.
The MVRV ratio shows the relationship between the current price and the average price at which each token was purchased. High MVRV values can indicate that the market has significant unrealized profits. Low values indicate that the market has small unrealized profits. Therefore, an increase in the MVRV ratio could mean that more investors may be willing to sell SHIB as potential profits increase.
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