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Dog-themed cryptocurrency Shiba Inu (SHIB) has experienced a significant price drop in the last 24 hours, shedding nearly 15% of its value. At the time of writing, SHIB had trimmed some of its intraday losses and was down 10.36% in the last 24 hours to $0.00002097.
On-chain data suggests that the actions of short-term traders may have precipitated the SHIB price downturn. In this regard, IntoTheBlock's holding time of transacted coins indicator seems to offer a clue to Shiba Inu's current investor sentiment.
The holding time of transacted coins indicator often provides powerful insights into the level of investor confidence and market sentiment.
For SHIB, the holding time of transacted coins stays low, between two weeks and one month, suggesting investors are now more focused on short-term gains.
Tomiwabold OlajideOn April 30, when the SHIB price dropped considerably, the average time held of coins transacted was one month, indicating activity from short-term traders who had bought at the peak of Shiba Inu's rally in March.
Shiba Inu rapidly surged to highs of $0.000045 in early March, which was followed by profit-taking. As buying pressure remained on the market, Shiba Inu managed to pan out highs of $0.00003285 on March 28 before steadily declining in the weeks that followed.
While the influence of short-term traders remains, it might be essential to consider the broader market context.
The entire cryptocurrency market, driven by Bitcoin, is experiencing substantial losses. Bitcoin fell over 9% on Wednesday, posting its worst monthly performance in April since late 2022, as investors withdrew money from cryptocurrencies ahead of the Federal Reserve's interest rate decision later today.
However, the good news is that Shiba Inu appears to be forming a bull flag on the daily chart. According to crypto analyst Ali, validating this pattern might trigger fresh highs for the Shiba Inu price.
A price rebound from about $0.000018343 might lead to a bullish breakout, sending SHIB prices to highs of $0.000072323.
Alex Dovbnya
Arman Shirinyan
Vladislav Sopov
Dan Burgin