Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Shiba Inu's value on exchanges is falling too rapidly and might hit levels below $300 million for the first time in the last 4 years. According to CryptoQuant, SHIB held on exchanges is now worth $331.96 million, down 6.81% in a day.
Market is not improving
The bearish market is somewhat aggravating, and outflows from exchanges would certainly push the total value below this key threshold.
The key here is the rapidly decreasing market value rather than fund outflows. In tokens, the reserves went down by only 0.05%, with around 86 trillion SHIB still sitting on exchanges.
$332 million is somewhat of a baseline for Shiba Inu, essentially the whole supply available for sale. If someone triggers a full 86 trillion SHIB sellout, that batch will not be worth $332 million; we would be lucky to see one-third of it.
SHIB's liquidity is thin when measured against institutional appetite, as most holders are regular retail investors.
On the contrary, if Shiba Inu somehow recovers, an increase in fund injections is more than a possibility. For now, the netflow stays negative, with around 45.9 billion SHIB leaving exchanges over the last 24 hours.
Those flows most likely reflect usual trading activity, with investors constantly moving funds into self-custody or selling.
SHIB price prediction
The price of the asset is doing no better: it invalidated the $0.000004 level and now bounces, even though the bounce is not followed by any surge in volume or momentum. It is purely caused by the oversold state of SHIB rather than anything else.
SHIB does not show a strong correlation with Bitcoin here, but rather with altcoins of the same echelon, most of which are oversold too.
SHIB dropped to around $0.0000037 on November 14, losing its July low of $0.00000413 along the way. RSI dipped below 30 at the same time, entering the oversold zone.
For the reserves to fall below $300 million, SHIB would have to drop to around $0.0000035, roughly 11% below the current price of $0.00000394.
