Shiba Inu Price Prediction: Is this 1.2 trillion signal bullish for SHIB?

Shiba Inu (SHIB) price it struggling to hold up above the $0.000027, on March 16, after tumbling from its 2024 peak of $0.000046 recorded on March 5. On-chain analysis explores how investors booking profits over the past week may have halted the rally.

Could new entrants consider this a good time to enter the market?

Investors taking profits moved 1.2 trillion SHIB in 10-days

Shiba Inu fell behind the memecoin rave this week. On-chain data trends suggests that SHIB holders may be exiting their positions, to reinvest profits into newer low-cap meme tokens.

In effect, while newer and trendier tokens like BONK and Dogewifhat (WIF) raced to new peaks this week, SHIB price has dipped 40% from it 3-year high of $0.00004 recorded on March 5.

Santiment’s chart below shows the real-time changes in the number of coins currently held on exchange-hosted wallets. It serves as a proxy for tracking the number of tokens have made available for sale at a given period.

As seen above, SHIB investors began to shift tokens into crypto exchange-hosted trading wallets once Shiba Inu price crossed $0.0000045 mark.

For context, as of March 5, investors held a total of 76.3 trillion SHIB tokens on crypto exchanges trading desks.

Interestingly, the figure as now increased by 1.2 trillion SHIB to hit 77.5 trillion Shiba Inu at the time of writing on March 15.

Valued at the current Shiba Inu price of $0.000029, the 1.2 trillion SHIB inflows are worth approximately $35 million. When investors move such a large number of tokens into trading platforms and crypto exchanges, it dilutes the current market supply and puts downward pressure on prices.

Unsurprisingly, SHIB price had dipped 40% since the exchange supply began to rise on March 5.

Shiba Inu Price Prediction: $35M Exchange inflows could offer Entry Opportunities

Based on the on-chain insights analyzed above, there has been inflow of $35 million worth of SHIB into exchanges over the past week. And this has contributed significantly to the 40% Shiba Inu price downswing.

However, with other rival tokens like WIF and BONK are still flying, it suggests that investor interest in the memecoin sector remains active.

Hence, strategic traders could consider the 40% decline an opportunity to enter the Shiba Inu markets at a discount.

If this scenario plays out, that increased demand could propel SHIB out of its current consolidation phase into a potential upswing above $0.000050.

Shiba Inu is currently trading around $0.000027. But if the bearish sell-offs continue to hold sway in the coming days, SHIB price stands the risk of losing the $0.000025 support.

Losing that key support level could lead to major margin calls and stop-loss orders getting activated, which could then open the doors to a downward spiral toward $0.00002.