- SHIB’s exchange reserve has dropped to a two-year low.
- There is a rise in bearish sentiment in the SHIB market.
The total amount of Shiba Inu [SHIB] held across cryptocurrency exchanges has fallen to its lowest since March 2022, according to Glassnode’s data.Â
Information from the on-chain data provider showed that SHIB’s exchange reserve has plummeted by 7% year-to-date. As of this writing, 147 trillion SHIB were held on exchange addresses.
Before you make your move
A steady decrease in an asset’s exchange reserve often signals a decline in selling pressure.
However, due to the general market decline witnessed in the past few weeks, there has been a surge in bearish activity in the SHIB market.
For example, the coin’s Awesome Oscillator has posted only red upward-facing bars since the 10th of March. This indicator measures an asset’s market trends and momentum.
When its bars are red and facing upwards, they indicate a decline in bullish momentum and that the short-term moving average is lower than the long-term moving average.Â
Confirming the bearish trend, a reading from SHIB’s Moving Average Convergence Divergence (MACD) indicator showed that the coin’s MACD line crossed below its signal line on the 14th of March.
This suggested the re-emergence of the bears, as the meme coin’s value has since dropped by 33%, per Coingecko’s data.Â
A downward intersection of an asset’s MACD line with its signal line indicates a loss of bullish momentum and a potential increase in selling pressure.
Traders often interpret this as a cue to exit long positions and occupy short ones.
Further, the growth in bearish trend has led to a decline in demand for SHIB. AMBCrypto found that the coin’s Money Flow Index (MFI) trended downward and was under 50 at the time of writing.
This indicated a rise in the meme coin’s selling pressure.
Additionally, its Chaikin Money Flow (CMF), which measures the flow of money in and out of the SHIB market, was less than zero.
A SHIB value below zero is a sign of market weakness, as it indicates liquidity exit.
How much are 1,10,100 SHIBs worth today?
In SHIB’s Futures market, its Open Interest has declined by 36% since the 6th of March, according to Coinglass’ data.
This indicated that market participants have exited their positions without opening new ones due to the rise in bearish sentiments.Â
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