Shiba Inu, the popular meme coin, has experienced a 10% decline since reaching a local high two days ago. However, there are several indicators suggesting that the rally may continue.
Throughout most of July, Shiba Inu remained in a constant sideways trend. But in the first few days of this month, the asset’s fate changed as it displayed strong upward momentum.
During this rally, the asset managed to break the $0.00001000 mark, resulting in a nearly 30% increase in just a few days. However, the coin was unable to sustain this surge and soon reached a local high, after which SHIB has been moving downward.
The following chart illustrates Shiba Inu’s performance over the past month:[Insert chart]
As you can see in the chart, while SHIB has experienced a significant 10% decline since its recent peak about two days ago, the overall gains of the rally have not been completely negated.
Over the past week, Shiba Inu has still seen a 9% increase, making it one of the top-performing coins by market capitalization during this period. In fact, most of the sector has seen losses, with rivals like Dogecoin experiencing a 5% decline in the past seven days.
However, looking at the past 24 hours, the meme coin has shown the worst performance, with losses of around 5%. This suggests that Shiba Inu may have already lost momentum, and the asset may gradually continue to decline until all the rally gains are erased.
Nevertheless, data from on-chain analytics firm Santiment might provide hope for Shiba Inu holders, as there appear to be some positive developments in the underlying metrics of the coin.
Two indicators of interest are the “trading volume” and “exchange supply.” The former measures the total amount of SHIB currently being transacted on the blockchain, while the latter tracks the total number of coins held in centralized exchange wallets.
From the chart, it is evident that the trading volume for the asset has significantly increased recently, indicating a high level of interest in Shiba Inu, which could potentially lead to further price increases.
Simultaneously, the exchange supply has experienced a decline. This could be constructive for the meme coin since these platforms are often used by investors for selling purposes. As holders withdraw their coins from exchanges, possibly to hold onto SHIB for longer periods, overall selling pressure in the market may decrease.
While this is far from a guarantee, if these factors continue to remain favorable in the coming days, a recovery of the Shiba Inu rally may become more likely.[Featured Image by Ferhat Deniz Fors on Unsplash.com, Charts by TradingView.com, Santiment.net]