This past week, significant developments transpired within the SHIB ecosystem. A substantial transfer of over 4 trillion Shiba Inu (SHIB) tokens, totaling approximately $103 million, occurred as they were relocated to different cryptocurrency exchanges. This movement triggered concerns among investors striving to capitalize on price fluctuations, accentuating the prevailing selling pressure on this meme coin.

Reports from Ali Martinez on X suggested that these tokens were gradually shifted to exchanges over the last two weeks, indicating potential sell-offs on the horizon.

Understanding Shiba Inu's Market Behavior

Insights from Santiment data shed light on the selling pressure affecting Shiba Inu. Analysis revealed a notable surge in SHIB tokens flowing towards exchanges, accompanied by a corresponding decrease in exchange supply.

Market data supported these findings, illustrating an active trend of divestment among investors, including prominent whales, as evidenced by the reduction in SHIB holdings by major addresses in recent days. Given the escalating selling pressure, a thorough examination was conducted to decipher SHIB's future price trajectory.

A graph provided by Santiment featuring SHIB's NVT (Network Value to Transactions Ratio) indicated a rising trend, hinting at a potential overvaluation that may trigger a corrective phase for SHIB.

Evaluation of Shiba Inu's Pricing

Following a recent surge, SHIB's Relative Strength Index (RSI) surged to 71 but later receded. Presently, the RSI stands slightly above 40, with SHIB priced at 0.00002518 following a 0.39% decline over the past 24 hours.

Data from Coinglass highlighted a significant increase in SHIB's open interest in futures trading, signaling a heightened investor enthusiasm in the asset. This trend correlates with the growing on-chain activities linked to SHIB.

In the midst of recent market dynamics, the transfer of 4 trillion SHIB tokens to exchanges sparked substantial deliberations. The meme coin, which has seen a remarkable 144% surge since the year started, may witness a retracement as investors explore profit-taking opportunities.

At the inception of the year, SHIB traded at $0.000009 before peaking at $0.000035, followed by a subsequent decline.