In the fast-paced world of cryptocurrency, Shiba Inu, the meme token that gained popularity as a Dogecoin alternative, is currently facing a bearish sentiment. On-chain signals and market behavior suggest that investors are moving their holdings to exchanges, potentially signaling a selloff. Let’s delve into the details and implications for cryptocurrency investors.

Shiba Inu’s Bearish Signals

The indicators and on-chain signals, according to IntoTheBlock, are pointing towards a bearish sentiment in the Shiba Inu market. At present, only 8% of Shiba Inu holders are making profits at the current price. This suggests that a significant portion of Shiba Inu investors are facing losses.

Data compiled by the on-chain analytics platform CryptoQuant echoes a similar sentiment. It reveals that investors have been transferring their SHIB tokens to exchanges, presumably with the intention of selling. A metric tracking the inflow of SHIB tokens to exchanges has shown an increase, particularly on October 8th when 1.3 trillion SHIB tokens made their way to trading platforms. Consequently, Shiba Inu’s price experienced a dip, falling from $0.00000719 to $0.00000693 the following day.

Implications for Price Action

The influx of SHIB tokens into exchanges has continued, with the total SHIB exchange reserve currently standing at 169.305 trillion. Another noteworthy metric from IntoTheBlock indicates a negative trend in the net flow of addresses holding more than 0.1% of the circulating supply. In a 7-day change, this metric is at -18.54%, and in a 30-day change, it stands at a concerning -80.22%. These negative percentages suggest that more SHIB tokens are flowing out of large whale accounts than are coming in.

Considering the current bearish sentiment, the increased inflow of tokens into crypto exchanges could be a sign that significant players in the Shiba Inu market are preparing to offload their holdings. If they decide to sell in a coordinated and aggressive manner, it could potentially flood the market with supply, leading to a further decline in SHIB’s price.

Despite Shiba Inu’s recent milestone of reaching a million blocks on its Shibarium network, this achievement has failed to translate into a bullish momentum for SHIB. This has left some members of the Shiba Inu community expressing their sentiments of frustration.

In contrast to earlier price levels, the meme token recently breached a crucial support level at $0.0000072, marking a 5.34% decrease in a 7-day timeframe. From a technical perspective, unless the bulls can regain momentum and hold the $0.0000068 support level, the downward trend may persist.

The Call to Action

Lucie, a senior member of the Shiba Inu development team, has issued a rallying cry to the Shiba Inu community, encouraging them to remain resilient in the face of the market’s waning momentum. In a tweet, Lucie said, “Let’s keep our heads held high, supporting and uplifting one another.” This call to unity and determination highlights the importance of community support in the volatile world of cryptocurrencies.

In conclusion, Shiba Inu is currently navigating through a bearish sentiment, with on-chain signals and market behavior signaling potential selloffs. The increased inflow of SHIB tokens into crypto exchanges and the negative trends in large whale accounts raise concerns for investors. While the future remains uncertain, the Shiba Inu community is being called upon to stand together and weather the storm. Crypto investors are advised to exercise caution and stay informed about market developments as they navigate these turbulent waters.