Memecoins
Shiba Inu’s 17% Rise Means THIS for Memecoin’s Long-Term Chances
- Buying pressure on Shiba Inu has increased in recent days
- Derivative indicators also showed bullish signs for the memecoin
Shiba Inu [SHIB]The world’s second-largest memecoin, has staged a promising comeback after a sharp drop over the past week. This massive price surge over the past 24 hours has given investors hope for a longer bullish rally.
So it’s worth looking at what’s been happening with SHIB lately.
Shiba Inu Bulls Buckle Up
The bears dominated the market last week by pushing the price of SHIB up to $0.000013. However, the bulls have now marked their entry with a double-digit price increase. In fact, according to CoinMarketCapThe altcoin’s price has increased by 17% in the last 24 hours.
At the time of writing, SHIB was trading at $0.00001543 with a market cap of over $9 billion, making it the 13th largest crypto.
The price rally also had a positive impact on the memecoin’s buy/sell sentiment. AMBCrypto’s analysis of Santiment data revealed that SHIB’s off-exchange supply increased while its off-exchange supply decreased, meaning investors bought Shiba Inu. The fact that buying pressure on the coin was high was further proven by its rising exchange outflows.
However, whales did not make any significant moves last week, as evidenced by the stable supply held by major addresses.
Source: Santiment
Additionally, Shiba Inu’s MVRV ratio also improved significantly on July 8. This can be attributed to its latest price hike. However, not everything seemed to be in favor of the memecoin.
For example, its network growth has dropped, meaning fewer new addresses have been used to transfer the token. Its velocity has also decreased. A drop in this metric means that SHIB has been used less often in transactions over a given period.
Source: Santiment
Will the SHIB rally last?
To better understand what to expect from the memecoin, AMBCrypto checked its derivatives indicators. Our analysis of Coinglass data revealed that SHIB’s long/short ratio has seen a sharp increase.
A rising long/short ratio indicates that long positions outnumber short positions. This figure indicates that bullish sentiment prevails in the market.
Source: Coinglass
Additionally, at the time of writing, SHIB fear and greed index had a value of 31%, which means that the market was in a “fear” phase.
Whenever the measure reaches this level, it means that the chances of a price increase are high.
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Finally, the MACD technical indicator showed the possibility of a bullish crossover.
Additionally, the Relative Strength Index has moved out of the oversold zone. This can be interpreted as a bullish signal for the cryptocurrency.
Source: TradingView