According to cryptocurrency expert Trader Kamikaze, after a successful growth period of Shiba Inu (SHIB), which led to a price increase of more than 60%, the latest downturn made potential investors think again.
It is important to note that the volume of SHIB on cryptocurrency exchanges has significantly decreased and, by December 12, amounted to 7.58%. Compared to June 2023, when this figure was almost 9%, this is a noticeable decrease.
A decrease in the supply of SHIB on exchanges usually indicates a decrease in pressure from sellers, which can create favorable conditions for potential profits, Trader Kamikaze concluded.
A graph of the decrease in the supply of SHIB on crypto exchanges can be seen on the graph provided by Trader Kamikaze.
Reducing the number of SHIB tokens available on exchanges and transferring them to storage is usually considered a positive factor for evaluating a meme coin, as it reduces sudden pressure from sellers. On the contrary, an increase in the share of SHIB on exchanges may indicate a possible price correction.
Despite the decrease in the price of SHIB, the second-level blockchain solution Shibarium has been setting new records for the number of daily transactions since the beginning of December, and the total volume of network transactions is approaching the 100 million mark.
The number of daily SHIB transactions can be seen on the graph provided by Shibarium.
The positive news is also the addition of the world's largest cryptocurrency exchange Binance of new trading pairs on the spot market using the First Digital USD (FDUSD) and Shiba Inu stablecoin.
At the time of writing, SHIB was trading at $0.00000961 with a daily gain of 1.5% and weekly losses of 4%. Compared to the previous month, the token still maintains an increase of 9%.
The shortage of supply in the stock markets, combined with trading above the 200-day simple moving average and the presence of 19 green days last month, may indicate potential for future growth.
