Shiba Inu [SHIB] Price Stalls Within Two-Month Range Formation. Will the Memecoin Bounce?

Shiba Inu [SHIB] was trading inside a two-month-old range formation at the time of press. 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 was unable to defend the mid-range stipple

Source: SHIB/USDT on TradingView

The memecoin fell below the mid-range level at $0.0000129. 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 too.

Shiba Inu’s on-chain metrics lacked signs of bullish strength

Although it was reported that whales were 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.

Funding Rate showed a shift in market sentiment and Shiba Inu holders’ behavior

Source: Glassnode

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 New Open Interest has fallen since 26 April – A sign of diminishing 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 an indication of demand, with sporadic spikes in activity more likely to signal selling. Combined with the exchange outflows, it could be a sign of accumulation.

Finally, the Mean Coin Age 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.