Known as the “Dogecoin Killer,” Shiba Inu meme coin has had notable ups and downs over the last few days following news of Shibarium. Recently, the Shiba Inu community was filled with bullish news over the relaunch of Shibarium, its Layer 2 scaling solution. However, despite the hype, SHIB’s price has remained under bearish dominance. Moreover, its declining on-chain activity has sparked fears of intensifying selling pressure in the coming days.
SHIB’s Exchange Withdrawing Transaction Touches 2-Year Low
The Shibarium launch failed to meet holders’ expectations as it experienced setbacks. As a result, SHIB, the flagship token of the Shiba Inu ecosystem, failed to respond positively. However, with the relaunch of the Shibarium, the scenario has changed slightly as SHIB’s price recorded minor gains on the price chart from the robust support region.
However, the surge in bullish activity could be fleeting, as declining on-chain indicators point to a growing sell-off sentiment among investors. According to data sourced from CryptoQuant, there has been a significant downturn in SHIB’s exchange withdrawal transactions.
This metric has been on a downward trajectory for several years and has now reached its lowest point in two years. Currently, SHIB’s exchange withdrawal transactions stand at approximately 604, a level not seen since May 2021.
High levels of withdrawal typically indicate strong investor confidence, as they prefer to hold their assets long-term rather than trade them. Conversely, low levels suggest that investors are keeping their assets on exchanges, possibly preparing to sell.
When more tokens are kept on exchanges, it usually means that investors are ready to sell at a moment’s notice. This creates selling pressure, which can trigger a downward price spiral.
What’s Next For SHIB’s Price?
Shiba Inu has been oscillating between the robust resistance level at $0.0000087 and the support of $0.0000077 for several days now. However, following the relaunch of Shibarium, there has been a spike in buying activity near the support zone, with buyers aiming for a skyrocketing trend ahead. As of writing, SHIB price trades at $0.00000835, surging over 3.3% from yesterday’s rate.
Currently, SHIB bulls are attempting to break the consolidation by surging above $0.0000088. To initiate a solid uptrend, they must swiftly send the price above the 38.2% Fib channel. Achieving this could set the stage for a rally towards the crucial mark of $0.00001043. However, sellers will likely trigger a strong fight near this level.
However, the EMA lines are still on a downward trend, and the price might soon face a sharp correction near its immediate resistance line. If this happens, bears will aim to push the price below the $0.0000078 mark to solidify their control and initiate a consolidation.