Shiba Inu Sees 10% Pullback, But Here’s Why Rally Can Still Continue
August 07 2023 - 10:00AM
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Shiba Inu has gone down 10% since hitting a local top two days ago.
But here are some metrics that suggest the rally could still
continue. Shiba Inu On-Chain Metrics Have Seen Positive
Developments Recently Shiba Inu had been stuck in a perpetual
sideways trend during most of July, but the meme coin’s fate
switched in the first few days of this month as its price showed
some strong upwards momentum. In this rally, the asset had managed
to breach the $0.00001000 level, meaning that it had risen almost
30% in a matter of days. The coin, however, couldn’t keep this rise
up and soon hit a local top, and since then, SHIB has been moving
down. The below chart shows how Shiba Inu has performed during the
past month: Looks like the value of the asset has shot up in recent
days | Source: SHIBUSD on TradingView As you can see in the graph,
while SHIB has seen a notable 10% drawdown since the top around two
days back, the full gains of the rally haven’t been wiped out just
yet. Shiba Inu is still around 9% up during the past week, which
makes it by far the best-performing coin among the top assets by
market cap, as most of the sector has in fact gone into the red in
this period. Investors of SHIB’s eternal rival, Dogecoin, for
instance, are 5% underwater in the past seven days. When looking at
only the last 24 hours, though, the meme coin is the
worst-performing top coin, as it has registered losses of around
5%. So it’s possible that Shiba Inu has already lost its steam and
the asset would gradually keep declining until all the profits of
the rally are retraced. Related Reading: Will Bitcoin Rebound
Anytime Soon? Here’s What On-Chain Data Says Data from the on-chain
analytics firm Santiment, however, might provide a glimmer of hope
to the meme coin’s holders, as some positive developments seem to
have occured in the coin’s underlying metrics. The data for the
SHIB trading volume and exchange supply | Source: Santiment on X
There are two indicators of interest here: the “trading volume” and
the “supply on exchanges.” The former of these is the measure of
the total amount of SHIB that investors are transacting on the
blockchain right now, while the latter keeps track of the total
number of coins sitting in the wallets of all centralized
exchanges. From the chart, it’s visible that the trading volume has
shot up for the asset recently. This is a sign that there is a high
amount of interest around Shiba Inu right now, which could
potentially help fuel more price surges. Related Reading: Bitcoin
NVT Shows Bearish Crossover, Price Drop Incoming? The supply of
exchanges, on the other hand, has registered a decline at the same
time. This is also likely to be constructive for the meme coin, as
these platforms are what investors use for selling-related
purposes. Since holders are withdrawing their coins from them
(possibly for holding onto the SHIB for extended periods), the
selling pressure in the market as a whole may be going down. It’s
far from a guarantee, but if these factors continue to stay
favorable in the coming days, then a bounce back for the Shiba Inu
rally may become more probable. Featured image from Ferhat Deniz
Fors on Unsplash.com, charts from TradingView.com, Santiment.net
SHIBA INU (COIN:SHIBUSD)
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SHIBA INU (COIN:SHIBUSD)
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