SHIB price hits a 3-week peak, long-term holders all take profit

In the past week, the price of Shiba Inu (SHIB) has shown significant growth, bringing short term hope for investors.

The memecoin is currently trading around a 3-week high. However, this rally also highlights the fragility of the market as many long-term investors (LTH) begin to sell off, creating downward pressure.

###SHIB investors are losing confidence

On-chain data from Santiment shows that the age consumed index — measuring the amount of long-held tokens being spent — has surged to its highest level in three months. This is a clear sign of long-term holders taking profits after the recent price increase.

Because this group holds a large supply, aggressive selling often weakens market confidence and drives prices down. With SHIB facing this pressure, the risk of a pullback is increasing despite recent recovery efforts.

The Age Consumed indicator of SHIB | Source: SantimentThe indicator of net position change on the exchange further reinforces the pessimistic outlook. The green bars indicate that the inflow of funds is increasing, meaning that many investors are transferring SHIB to the exchange to sell. This trend reflects a decline in the optimistic sentiment of Shiba Inu holders.

In just five days, over 906 billion SHIB, worth 11.6 million USD, has been sold on exchanges. The prolonged selling pressure indicates a growing cautious sentiment in the market. Although Shiba Inu has recorded a short term price increase, investor sentiment currently does not support a long-term recovery.

Change in SHIB's net position on the exchange | Source: Glassnode###SHIB Price Outlook

Shiba Inu has increased by nearly 7% over the past week, with the token currently trading around $0.00001306. This memecoin is trying to establish support at $0.00001285, keeping the price close to its recent peak.

However, maintaining this upward momentum seems very difficult without strong confidence from investors. If selling pressure continues to increase, SHIB could drop to $0.00001252 or even $0.00001182, wiping out recent gains.

Technical analysis of SHIB | Source: TradingViewOn the other hand, if SHIB successfully defends the support level of $0.00001285, a recovery could occur. In that case, SHIB will aim for $0.00001391, dismissing bearish prospects and signaling a new upward momentum.

Vincent