On May 5th, it was reported that the 90-day Mean Coin Age (MCA) in the Shiba Inu (SHIB) network suddenly increased. MCA represents the average age of all tokens on a blockchain. Historically, a low MCA implies that more tokens are being withdrawn to wallets. In the short term, this movement indicates that investors are not willing to sell, which could mean that the token’s price may not face a significant drop.
Shiba Inu’s Downward Pressure
On the other hand, sudden increases in MCA, as seen with Shiba Inu, might indicate that the old cryptocurrency is being moved elsewhere. Therefore, the SHIB price could be on the verge of another drop. At the time of writing, SHIB is trading at $0.000024. Over the last 30 days, this represents a decrease of 8.22%. If the mentioned metric continues to rise, the token’s value could fall below this price. Shiba Inu’s social dominance rose to 1.2, indicating an increase in discussions about the project compared to the other 99 projects in the top 100.
SHIB might be planning a move towards $0.000019. As for the price movement in the cryptocurrency, an increase in social dominance could be positive. However, if it rises too much, a price drop for SHIB could be imminent. If this situation develops, SHIB could drop an additional 20%, potentially bringing its price down to $0.000019. Also, a one-day volatility showed that this prediction could be possible. At the time of writing, on-chain data indicated that volatility dropped to 0.15. This drop suggests that the meme token may not experience significant price volatility soon.
SHIB Analytical Reports
Therefore, those expecting a rise to $0.000030 might need to lower their expectations. Shiba Inu’s price range in the short term could be between $0.000019 and $0.000023. However, the token could achieve savings thanks to data from Glassnode. According to Glassnode analysis, the net exchange flow volume was -86.58 billion. This measurement is the difference between the volumes entering and leaving the exchanges. A positive reading means more tokens entered the exchange than were withdrawn.
Thus, a negative reading implies that more SHIB holders are withdrawing their tokens from most exchanges. If the number of withdrawn tokens continues to increase, Shiba Inu could find a balance and the possibility of a significant correction could be removed. However, if the number changes to the green zone, the predicted drop could be confirmed.
