As the cryptocurrency market plummeted to $920 billion in market capitalization, Shiba Inu [SHIB] was one of the most popular tokens. Despite the announcement that it will be listed on BitMEX, the 15th-ranked meme coin has lost 5.37 percent in the last 24 hours, according to CoinMarketCap.
In the early hours of October 10, BitMEX, a cryptocurrency derivatives exchange based in the Seychelles, announced that SHIB would be one of the new assets to be listed. The exchange revealed that SHIB was a part of its plans along with Decentraland [MANA], Sandbox [SAND], and two others.
However, rather than the much-anticipated rise, the developments surrounding the listing resulted in a further decline. In addition, the market collapse had a negative impact on more than just SHIB.
You traders, you went the wrong way.
The derivatives information portal Coinglass reported that approximately $1.63 million worth of SHIB had been sold within the last 24 hours. Notably, it appeared as though many SHIB traders anticipated an increase. This was clear because Coinglass showed that a lot of the liquidations came from traders with long positions.
At press time, short-position traders only felt a slight brunt of the wipeout.
In addition, it appeared that SHIB investors would not soon recover their losses. The data from the Market Value to Realized Value (MVRV) ratio suggested this. Santiment data indicated that the SHIB MVRV ratio was -7.89 percent. The MVRV ratio appeared to be on the road to recovery on October 3rd.
However, it fell back a day later because it was unable to withstand the pressure. As a result, there was less incentive for investors to sell their holdings because they were less likely to make a profit. Additionally, the current ratio indicated a high likelihood of further surrender.
In addition, SHIB’s volume had increased by more than one hundred percent since October 10. However, this accumulation could be considered late bear accumulation even though it could not cause a price increase. Investors might have decided that the short-term bottom was in in situations like this one.
Other chain events
In addition, it was possible that some SHIB investors who held assets on exchanges backed out of their positions. This was shown by the rise in the exchange outflow to 147.93 billion in the early hours of October 11th. The outflow appeared to have been somewhat calm despite the spike.
Santiment disclosed that the outflow of currency was 20.87 billion at the time of publication.Interestingly, the exchange inflow was approximately four times greater than the exchange outflow, at 89.65 billion, suggesting that SHIB investors were not returning to accumulation. There might have been more indications of selling the meme coin at this rate.
