NOIDA (CoinChapter.com) — Shiba Inu (SHIB) price growth has plateaued after reaching its highest level since December 2021 on March 5. However, on-chain data shows that traders remain optimistic about the token’s future price action.
Over the past 24 hours, the cryptocurrency market cap has fallen nearly 3%, wiping nearly $70 billion from the market. Memecoins like Pepe, Dogwifhat, Floki, etc. are leading the sell-off, leading many to wonder if Memecoin season is over.
On-chain data raises hopes for Shiba Inu Bulls.
On-chain data shows a 602% surge in net flows from large SHIB holders, suggesting whales are hoarding the token. Interestingly, the surge in accumulation coincided with a decline in Shiba Inu prices, suggesting traders were buying the dip.
SHIB exchange holdings fell along with the token price, again reinforcing the narrative that traders were buying the dip. Exchange inflows have also decreased, indicating that traders are not sending SHIB tokens to exchanges.
A decline in foreign exchange reserves or inflows suggests that the overall market sentiment is toward hodling. Traders are likely moving SHIB tokens to their personal wallets. Therefore, market participants are optimistic about the price action of memecoin.
SHIB support a bit unstable
One reason SHIB price failed to stay above the $0.000025 and $0.000026 support areas is that nearly 9,100 addresses purchased 2.57 trillion tokens in that range, per SHIB on-chain data from IntoTheBlock.
When SHIB price reached the support level, some traders panicked and started recording profits.
SHIB price fell more than 21% on March 16, reaching a daily low near $0.000024 before recovering some strength. If the downtrend continues, SHIB price may fall towards the 0.382 FIB support level near $0.000023.
The $0.000023 to $0.000019 price range has over 86,400 addresses that have purchased approximately 86 trillion tokens. A break to this support level could dramatically increase selling pressure on SHIB price, causing the Shiba Inu token price to test support near $0.0000173.
Conversely, in a rally, SHIB price will face resistance near $0.000031. Moreover, on-chain indicators could attract buyers into the market and push the Shiba Inu token price towards resistance levels near $0.000037, cutting into profits.
SHIB’s RSI remained neutral at 51.08 on the daily chart.