Shiba Inu is down 10% since reaching a local high two days ago. But here are some statistics that suggest the rally may still continue.
Shiba Inu On-Chain Metrics have seen positive developments lately
Shiba Inu was stuck in a perpetual sideways trend for most of July, but the fate of the meme coin changed in the first few days of this month when the price showed strong upward momentum.
In this rally, the asset had managed to break the $0.00001000 level, meaning it was up almost 30% in a few days. However, the currency could not sustain this rise and soon reached a local high, and SHIB has been moving downwards ever since.
The chart below shows how Shiba Inu has performed over 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 chart, while SHIB has seen a remarkable 10% decline since its top about two days ago, the entire gains from the rally have not yet been wiped out.
Shiba Inu is still up around 9% over the past week, making it by far the best performing coin among top assets by market capitalization as most of the sector has effectively gone into the red over this period. Investors of SHIB’s perennial rival, Dogecoin, for example, were underwater by 5% over the past seven days.
However, if we only look at the past 24 hours, the meme coin is the worst performing top coin as it has registered losses of around 5%. So it is possible that Shiba Inu has already lost its strength and assets will continue to gradually decline until all the gains from the rally are recouped.
Data from the on-chain analytics company Sanitationhowever, may give a glimmer of hope to the holders of the meme coin as some positive developments appear to have occurred in the coin’s underlying stats.
The data for the SHIB trading volume and exchange supply | Source: Santiment on X
Two indicators are important here: the ‘trade volume’ and the ‘exchange supply’. The first of these measures the total amount of SHIB that investors are currently trading on the blockchain, while the latter tracks the total number of coins residing in the wallets of all centralized exchanges.
The chart shows that the trading volume for the asset has recently increased. This is a sign that there is a lot of interest in Shiba Inu right now, which could potentially help fuel more price hikes.
At the same time, the supply of stock exchanges has fallen. This is also likely to be constructive for the meme coin as investors use these platforms for sales related purposes.
As holders take their coins back from them (possibly to hold the SHIB for an extended period of time), the selling pressure in the market as a whole may ease.
It’s far from a guarantee, but if these factors remain favorable in the coming days, an uptick in the Shiba Inu rally could become more likely.
Featured image of Ferhat Deniz Fors on Unsplash.com, charts from TradingView.com, Santiment.net