Shiba Inu (SHIB) vulnerable to decline amid massive sell-off, analyst says

In recent days, the cryptocurrency market has been facing unfavorable conditions, significantly affecting the price of the Shiba Inu memecoin (SHIB). According to analyst Aaryamann Shrivastava, the downward trend in the cryptocurrency’s price is expected to continue due to the increase in sales and the drop in investor confidence.

“The Shiba Inu price is falling in response to rapidly developing bear market conditions,” Shrivastava said. He highlights that rising sales and declining confidence among SHIB holders are potentially catalyzing this correction.

The analyst notes that optimism among Shiba Inu investors is waning. In recent days, the total supply on exchanges has seen a sharp increase, reaching a six-month high. In the last 48 hours, wallets across all exchanges have increased by over 4.66 trillion SHIB, which equates to a value of $103 million.

“This supply was sold by investors looking to secure any accrued gains or offset their losses,” Shrivastava explained. This massive sale reflects the feeling of avoiding further losses, even extending to safer investors. “Long-term holders, known for their resilience, have been moving their assets, which is a worrying sign,” he added.

Shiba Inu (SHIB)

An important metric noted by Shrivastava is “consumed age,” which calculates the total days lost by multiplying the total supply moved by the number of days since the last move.

He points out that spikes in consumed age indicate large amounts of supplies or very old coins on the move, both of which are bearish for the asset.

Shrivastava’s prediction for the Shiba Inu price is grim. The cryptocurrency failed to breach the $0.00002584 level and exited the consolidation between that value and $0.00002267. Now, SHIB is heading towards critical support at $0.00002093, a level it has not broken since April.

“There is a significant chance of a drop below this support, which could potentially send SHIB to $0.00002000. This would mark a multi-month low for the asset,” said Shrivastava.

However, he also points to a possibility of recovery. According to him, if the Shiba Inu price recovers from $0.00002093, it may recover slightly. Therefore, she points out that this would result in the continued consolidation of SHIB and invalidate the bearish thesis.