The value of the dog-themed cryptocurrency Shiba Inu (SHIB) has dropped significantly during the past day, losing almost 15% of its value. As of this writing, SHIB has pared back some of its intraday losses and was down 10.36% to $0.00002097 over the previous day.
The SHIB price decline may have been sparked by the short-term traders' actions, according to on-chain data. In this sense, Shiba Inu's present investor attitude appears to be indicated by IntoTheBlock's holding time of transacted coins metric.
Strong indications of investor and market mood may frequently be found in the holding time of transacted coin indicator.
The low holding period of transacted coins for SHIB—between two weeks and one month—suggests that investors are now more concerned with making quick profits.
The average time held of coins transacted on April 30, when the SHIB price fell significantly, was one month. This suggests that short-term traders who had purchased at the height of the Shiba Inu's surge in March were active.
Early in March, Shiba Inu had a sharp increase to highs of $0.000045, which was followed by profit-taking. Shiba Inu managed to reach highs of $0.00003285 on March 28 while purchasing pressure was still there in the market, but in the weeks that followed, the price rapidly dropped.
Even though short-term traders continue to have an impact, it may be important to take the larger market environment into account.
With Bitcoin at its center, the entire cryptocurrency market is suffering significant losses. Ahead of the Federal Reserve's interest rate announcement later today, investors withdrew money from cryptocurrencies, causing Bitcoin to drop almost 9% on Wednesday and record its worst monthly performance in April since late 2022.
On the daily chart, Shiba Inu seems to be forming a bull flag, which is positive news. Crypto analyst Ali believes that confirming this pattern could lead to new highs in the price of Shiba Inus.
May 2024, Cryptoniteuae