2024-03-26 03:06:30
- SHIB’s foreign exchange reserve has fallen to its lowest level in two years.
- There is an increase in bearish sentiment in the SHIB market.
The total amount of Shiba Inu [SHIB] held on cryptocurrency exchanges has fallen to its lowest level since March 2022, according to glass node data.
Data from the on-chain data provider showed that SHIB’s foreign exchange reserve has plummeted 7% so far this year. At the time of writing, 147 trillion SHIB were held in exchange addresses.
Before you make your move
A steady decline in an asset’s exchange reserve often indicates a decrease in selling pressure.
However, due to the overall market decline seen in recent weeks, there has been an increase in bearish activity in the SHIB market.
For example, the coin’s Awesome Oscillator has posted only upward-facing red bars since March 10. This indicator measures the market trends and momentum of an asset.
When their bars are red and facing up, they indicate a decline in bullish momentum and that the short-term moving average is lower than the long-term moving average.
Confirming the bearish trend, a reading of SHIB’s Moving Average Convergence Divergence (MACD) indicator showed that the coin’s MACD line crossed below its signal line on March 14.
This suggested the resurgence of the bears, as the value of the meme coin has since fallen by 33%, per Coingecko’s data.
A descending intersection of an asset’s MACD line with its signal line indicates a loss of bullish momentum and a possible increase in selling pressure.
Traders often interpret this as a signal to exit long positions and enter short positions.
Furthermore, the growth of the bearish trend has caused a decrease in demand for SHIB. AMBCrypto discovered that the coin’s Money Flow Index (MFI) was trending downward and was below 50 at the time of writing.
This indicated an increase in selling pressure for the meme coin.
Furthermore, its Chaikin Money Flow (CMF), which measures the flow of money into and out of the SHIB market, was below zero.
A SHIB value below zero is a sign of market weakness as it indicates liquidity outflow.
Source: SHIB/USDT on TradingView
How much they cost 1,10,100 SHIB valen hoy
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In the SHIB futures market, its open interest has decreased by 36% since March 6, according to Coinglass’ data.
This indicated that market participants exited their positions without opening new ones due to rising bearish sentiments.
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This is an automatic translation of our English version.
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