CoinDesk Report:
Shiba Inu has seen increased buying pressure over the past few days. Derivative indicators also show optimistic signs for the meme coin.
Shiba Inu (SHIB), the world’s second-largest meme coin, is poised for a comeback after a significant drop in the past week. A substantial price increase in the last 24 hours has brought hopes of an extended bullish trend for investors.
Therefore, it’s worth examining SHIB’s recent developments.
Bullish Momentum and Security Belts for Shiba Inu
Last week, bearish dominance pushed SHIB prices down to $0.000013. However, a double-digit price surge now signals their comeback. Indeed, according to CoinMarketCap data, altcoin prices have surged by 17% in the past 24 hours.
At the time of writing, SHIB is trading at $0.00001543, with a market cap exceeding $9 billion, making it the 13th largest cryptocurrency.
The price surge has also positively impacted sentiment around meme coin trading. Analysis of Santiment data by AMBCrypto indicates an increase in off-exchange supply of SHIB alongside a decrease in on-exchange supply, underscoring continued investor interest in Shiba Inu. A significant uptick in outflows further demonstrates strong buying pressure for this coin.
However, whales refrained from major actions last week, and stable supplies at top addresses reinforce this observation.
Additionally, Shiba Inu’s MVRV ratio spiked significantly on July 8, attributed to its recent price increase. Yet, not all metrics favor the meme coin.
For instance, its network growth rate has declined, indicating fewer new addresses being used for token transfers. Its velocity has also decreased, suggesting reduced usage in transactions over a certain period.
Will SHIB’s rebound sustain?
To better gauge expectations for the meme coin, AMBCrypto examined its derivative indicators. Analysis of Coinglass data reveals a sharp increase in SHIB’s long/short ratio.
An increase in this ratio indicates a greater number of long positions relative to short positions, suggesting bullish sentiment pervades the market.
Furthermore, at the time of writing, SHIB’s fear and greed index stands at 31%, signaling a “fear” phase in the market. Whenever the index reaches this level, it often indicates a high likelihood of price increases.
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Lastly, technical indicators show the potential for a bullish crossover in the MACD. Additionally, the Relative Strength Index has exited oversold territory, interpreted as a bullish signal for cryptocurrencies.
