- Shiba Inu’s old coins have seen an unexpected spike, potentially altering previous price forecasts.
- The Mean Coin Age (MCA) has indicated a possible further price decrease for SHIB.
- However, the Exchange Netflow Volume is negative, suggesting possible price stability.
Shiba Inu’s old coins have seen an unexpected spike, potentially altering previous price forecasts. However, the Exchange Netflow Volume is negative, suggesting possible price stability.
Unexpected Spike in Shiba Inu’s Old Coins
On the 5th of May, the 90-day Mean Coin Age (MCA) on the Shiba Inu [SHIB] network suddenly jumped. The MCA is the average age of all tokens on a blockchain, and this spike suggests that old coins are transferring their assets to another residence, possibly an exchange. This could indicate that SHIB’s price could be on the verge of another decline.
Implications of the Spike
Historically, a low MCA implies that more coins are being retired to a wallet, which is a sign that holders are not willing to sell. This usually prevents a severe decline in the price of the token. However, spikes in the MCA, like the one seen with Shiba Inu, suggest that old coins are moving their assets, which often leads to a price decrease. At press time, SHIB changed hands at $0.000024, an 8.22% decline in the last 30 days. If the MCA continues to rise, the value of the token might drop below this price.
Shiba Inu’s Social Dominance
Another metric to consider is social dominance. As of this writing, Shiba Inu’s social dominance had risen to 1.2. This increase suggests rising discussions about the project when compared to the other 99 in the top 100. Rising social dominance might be good for the price action, but if it gets too high, the price of SHIB might feel some pressure, and a plunge could be impending. If this is the case, SHIB might tumble by another 20%, and this could leave the price at $0.000019.
Conclusion
In conclusion, the unexpected spike in Shiba Inu’s old coins may have changed previous forecasts. The Mean Coin Age indicated a further price decrease for SHIB, but the negative Exchange Netflow Volume suggests possible stability. If the number of tokens withdrawn continues to rise, then Shiba Inu might find a balance, and a notable correction could be off the table. However, if the number changes to the green zone, the projected decline might be validated.
