Despite a recent 10% dip, there are signs that suggest the Shiba Inu Rally Can Still Continue. The meme cryptocurrency Shiba Inu, after a stagnant July, demonstrated a positive trend in the initial days of the current month, displaying a significant upward momentum.
A Look at the Recent Performance
The digital asset successfully crossed the $0.00001000 mark, marking an almost 30% increase within a few days. However, the coin was unable to sustain this surge and hit a local top, after which it has been on a downward trajectory. The following graph illustrates Shiba Inu’s performance over the past month:
Despite a noticeable 10% pullback from the top two days ago, the rally’s full gains haven’t completely evaporated. Shiba Inu remains approximately 9% up over the past week, making it one of the top-performing coins by market cap, especially when the majority of the sector has turned red during this period.
Comparative Analysis with Rival Cryptocurrency
Investors in Shiba Inu’s perpetual competitor, Dogecoin, have experienced a 5% loss over the past seven days. However, when considering only the last 24 hours, Shiba Inu is the worst-performing top coin, registering losses of approximately 5%. This could suggest that Shiba Inu has exhausted its momentum and the asset may continue to decline until all the rally’s profits are retraced.
Positive Signs from On-Chain Metrics
However, data from on-chain analytics firm Santiment may offer some hope to Shiba Inu holders. The metrics show positive developments in the coin’s underlying indicators. There are two main points of interest here: the “trading volume” and the “supply on exchanges.” The former measures the total amount of Shiba Inu being transacted on the blockchain, while the latter tracks the total number of coins held in all centralized exchanges’ wallets.
Recent data reveals a spike in trading volume for Shiba Inu, indicating a high level of interest, which could potentially trigger further price surges. Concurrently, the supply on exchanges has seen a decline. This could be a positive sign for the meme coin, as investors often use these platforms for selling purposes. If holders are withdrawing their coins (possibly for long-term holding), the selling pressure in the market may be decreasing.
While these are not guaranteed indicators, if these trends persist in the coming days, the probability of a bounce back for the Shiba Inu rally may increase.
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