SHIB Long-Term Holders Are Selling, Will Price Decline Further?

Shi­ba Inu is strug­gling to break out of its recent downswing. 

On-chain data shows how the net­work growth decline and sell pres­sure from long-term hold­ers could slow down SHIB price resurgence. 

Shiba Inu Network Is Not Growing

Hold­ers of Shi­ba Inu have endured side­ways move­ment by the pop­u­lar meme coin in recent weeks. The recent decline in the net­work trac­tion has cooled ear­ly signs of a poten­tial price resurgence.

Accord­ing to Glassnode, the num­ber of new net­work par­tic­i­pants join­ing the Shi­ba Inu net­work has been down since ear­ly Feb­ru­ary 2023. 

In the chart below, Glassnode reports that new wal­let address­es cre­at­ed on the Shi­ba Inu net­work have declined from 4,575 on Feb. 4 to 1,696 address­es at the close of March 21.

When the num­ber of new address­es on a blockchain net­work declines, it denotes dwin­dling inter­est in its core ser­vice offer­ings. Unless this trend is reversed, SHIB may strug­gle to find new demand in the com­ing weeks. 

Fur­ther­more, the dwin­dling bal­ances of long-term hold­ers also val­i­date the bear­ish out­look for SHIB. As report­ed by San­ti­ment, the Mean Coin Age of SHIB tokens in cir­cu­la­tion has plunged sharply. 

In the San­ti­ment chart below, SHIB Mean Coin Age (90d) has dropped from 44.63 on Feb. 2 to 29.06 as of March 22. 

As not­ed, the Mean Coin Age (90d) data shows the aver­age num­ber of days recent­ly trad­ed tokens stayed in their cur­rent address. A sharp decline usu­al­ly indi­cates a sell­ing trend among long-term holders. 

The pil­ing sell-pres­sure from long-term Shi­ba Inu hold­ers could cause pan­ic among cryp­to investors. This could trig­ger a fur­ther price decline.

Is $0.000008 the Next Price Stop For Shiba Inu? 

The Glob­al In/Out Of Mon­ey (GIOMAP) data com­piled by blockchain foren­sics firm IntoThe­Block indi­cates that SHIB could soon drop toward $0.000008. 

Hav­ing failed to break out of the $0.000011 resis­tance zone over the past week, SHIB hold­ers can now expect a down­swing toward $0.000008, the min­i­mum price that 200,000 address­es paid for near­ly 47 tril­lion SHIB tokens. 

Fail­ure to hold this lev­el could see SHIB slide fur­ther to reach $0.000006, where anoth­er 154,000 address­es that bought 53 tril­lion tokens can ease the slump. 

Still, the bulls could take charge again if SHIB breaks out of its cur­rent resis­tance zone at $0.000012. Where 138,000 address­es ini­tial­ly bought approx­i­mate­ly 93 tril­lion tokens.

If this resis­tance is bro­ken, SHIB can head on a pro­longed upswing toward $0.000012. Where 100,000 address­es have pur­chased a com­bined 466 tril­lion SHIB tokens.