Shiba Inu Its price fell below $0.00003 on March 12. These key on-chain metrics indicate that the consolidation phase may continue.
After a 300% rally in the price of SHIB to a three-year high of $0.00004 on March 9, meme coin It seems to indicate that his mania is cooling down. Data trends on the blockchain offer an insight into key metrics that may influence Shiba Inu price movements in the near future.
Debuts Amid Investor Frenzy
Meme coin industry in the last 30 days PEPEsaw Dogecoin (DOGE), BONK, and Dogwifhat (WIF) take turns dominating the crypto top earners charts.
The price of Shiba Inu is not far behind either. It rose 420% from $0.000009 on February 4 to a three-year high of $0.00004 on March 5.
While bullish traders made triple-digit gains, the rally also meant that many long-term holders who bought SHIB when prices last reached these levels in 2021 also became profitable again.
According to the latest on-chain data trends, many long-term SHIB holders took advantage of the rally to exit their positions at favorable prices.
IntoTheBlock’s addresses by retention metric tracks the number of all wallets that have not been held for a year or more.
As can be seen, the number of SHIB long-term holder addresses was 1.03 million on February 29. However, at the time of writing, this number has rapidly decreased to 1.01 million. This shows that 20,000 long-term SHIB investors put their tokens up for sale in March.
The timing suggests that long-term owners began to realize their profits in early March, as the Shiba Inu price broke above the two-year resistance at $0.00003.
Shiba Inu Network Transactions Dropped 81% Last Week
Long-term investors are crucial to the stability of any blockchain network. This not only dilutes market supply, but also sends broad bearish signals to other existing investors and discourages potential new participants.
Confirming this bearish outlook, Shiba Inu experienced a significant decrease in network activity last week.
The CryptoQuant chart tracks the daily number of confirmed transactions taking place on the SHIB network.
The latest data shows that the Shiba Inu network recorded a total of 16,335 transactions on March 12, a massive 81% drop from the 87,054 transactions recorded on March 5, the height of the SHIB price rally.
Koinfinans.com As we reported, the decrease in the number of transactions shows that the demand for products and services hosted on the blockchain network has decreased.
When the level of network activity diverges negatively from an asset’s price uptrend, as observed above, the rally may soon stall as the native token struggles to find new demand.
