Shiba Inu Price Could Drop as Billions of Tokens Flood Exchanges

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Shiba Inu (SHIB) started June with a surprising trend: a large amount of SHIB tokens moved to exchanges. This metric, called Exchange Net Position Change, suggests investors might be planning to sell SHIB, which could drive the price down.

Understanding SHIB’s Exchange Net Position Change

This metric tracks the movement of SHIB tokens into and out of wallets on exchanges. When the value is positive, it means investors deposit more SHIB than they withdraw. This trend often precedes a price drop due to selling.

SHIB’s Past Performance and Price Movements

Earlier this year, from March to mid-May, more SHIB was leaving exchanges than entering. This coincided with a price increase for Shiba Inu. However, the price has been stagnant since then. The recent surge of SHIB entering exchanges could signal another price drop for SHIB. The token’s price is currently around $0.000024, which is a 6.49% decline over the past 3 months.

Shiba Inu’s Network Growth Slowdown Raises Concerns

Another metric, Network Growth, which tracks how many new people are using SHIB, has also been dropping since May 29th. This suggests a declining interest in SHIB, which connotes a major factor for a price decrease. If this trend continues, the price of SHIB could fall to around $0.000020.

SHIB Needs More Trading Activity to Rise in Value

Compared to other popular memecoins, SHIB token investors use a lower number of SHIB tokens in their daily trade.This lack of trading activity could make it difficult for the price of SHIB to increase. If more people start trading SHIB, it could boost the price.

Shiba Inu Faces Potential Price Correction

The recent movement of SHIB tokens to exchanges and the decline in network growth suggest that the price of SHIB could go down soon. Investors should watch these trends closely and get ready for a price fluctuation. If more people buy SHIB and trade it more actively, the price could go back up. However, for that to happen, needs to change to bring back interest in SHIB.

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