Shiba Inu (SHIB), a meme token that gained widespread attention during the previous bullish season, is facing a potential sales pressure as long-term investors are likely to consider selling their holdings. According to data from IntoTheBlock, there are specific price levels that have proven to be the most costly for investors. These levels, marked on the chart below, suggest that selling pressure may intensify in these areas.
The data analysis indicates that a significant number of investors have been holding Shiba Inu since the previous bullish season. As the token experienced notable price increases during that period, these investors may now be considering profit-taking or reassessing their positions. The identified costly levels are likely to be psychologically significant for these long-term investors, triggering potential selling pressure.
However, amidst these potential concerns, there is also positive news for the Shiba Inu community. The number of active addresses associated with the token has witnessed a remarkable increase in the second quarter of the year. According to recent data, the number of active addresses surged by an impressive 357% as of May 21, reaching over 4,000 by June 27.
The surge in active addresses is a positive sign for Shiba Inu and demonstrates a growing interest and engagement within the community. It suggests that despite the potential selling pressure from long-term investors, there is still a substantial number of individuals actively participating in the token’s ecosystem.
It is important to note that Shiba Inu is categorized as a meme token, which means it is primarily driven by its community and online presence. While meme tokens can capture the imagination of investors and gain significant attention, they also come with inherent risks. These risks include a lack of fundamental value, heightened volatility, and the potential for manipulation.
Investors considering meme tokens like Shiba Inu should exercise caution and thoroughly research the project before making any investment decisions. Conducting thorough due diligence, including understanding the token’s underlying technology, team, and roadmap, is crucial to navigate the risks associated with meme tokens effectively.
As the Shiba Inu community continues to grow and the number of active addresses expands, it will be interesting to observe how the market dynamics unfold. The potential sales pressure from long-term investors may exert short-term downward pressure on the token’s price, but the increasing engagement from new participants could offer support in the long run.