Shiba Inu [SHIB] Trading Within a Two-Month-Old Range Formation

Shiba Inu [SHIB] was trading within a two-month-old range formation, at the time of writing. In fact, its price action over the past few days suggested that bears have been gaining dominance. A recent report also highlighted heavy sell pressure from some whales.

Shiba Inu price analysis: Technicals and on-chain

The memecoin fell below the mid-range level at $0.129. The inability to defend this support meant that SHIB is more likely to fall towards the range lows, than push towards the range highs. Additionally, the crypto’s on-chain metrics mostly reflected a lack of strength from the bulls.

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Despite reports of whales aggressively selling Shiba Inu, the exchange net position change has been negative since January. This implied that more tokens have been leaving exchanges – A sign of reduced sell pressure and more accumulation. It saw high coin flows to exchanges in December, something that marked the rally’s top.

Shiba Inu price action could be headed towards another major pivot. Could it be another rally towards the yearly highs or a fall towards the critical lows?

The funding rate data on Santiment revealed that the past few days saw a hike in bearish sentiments, with the funding rate dropping below zero. The Open Interest has also fallen since 26 April – A sign of dwindling bullish conviction.

The active addresses metric saw a surge in early May, but the activity has died down once more. Consistently high activity might be indicative of demand, with sporadic spikes in activity more likely to point towards selling. Combined with the exchange outflows, it could be a sign of accumulation.

Finally, the mean coin age has lacked a strong uptrend over the past month, unlike the January-March stretch. Back then, the steady northward march of the MCA signaled network-wide accumulation. The dormant circulation saw a few hills form on the metric to reflect a hike in token movement, marking small waves of selling on-chain. The 30-day MVRV was back in negative territory. This could be an early sign that selling pressure from short-term holders was at an end. This could give the memecoin time for consolidation and accumulation.