- Network activity decreased in September.
- The average coin age and MVRV showed short-term bearishness.
Shiba Inu [SHIB] has been trading within a triangle pattern for 75 days. The meme coin promised a strong performance in the coming months after breaking out of this triangle last week.
Since Monday, September 16, the entire crypto market has been showing a bullish trend and a gain of approximately 7% was observed. Shiba Inu rose 8% and the breach of local resistance at $0.000014 meant another 7%-8% gain.
Network activity has decreased
Daily active addresses trended downward from May to July, but began to stabilize until the end of August. There was a peak in activity in early September, but since then the value has fallen again.
The latest drop saw daily activity reach its lowest level since the first week of February earlier this year. Network growth has also slowed since the last week of August.
Weighted sentiment was strongly positive in August, but like active addresses and network growth, this also took a hit in September. Overall, Shiba Inu does not seem likely to see an increase in demand in the short term due to the increasing number of users.
Short-term bearish sentiment for SHIB
The 30-day MVRV was positive. The last time a noticeable positive spike was observed was on August 24 and was followed by a sharp 12% price correction over the next three days.
The dormant circulation saw a noticeable spike on September 20, another sign of short-term bearish pressure. Meanwhile, the average coin age also trended downward over the past month, showing a spread across the network.
Open Interest has risen along with prices over the past week, showing strong bullish sentiment. The funding rate was also very positive, but has fallen in the last 24 hours.
Realistic or not, here is SHIB’s market cap in BTC terms
This decline in funding rates suggested that the long-short imbalance was waning, but long positions were still favored. Overall, the on-chain metrics indicated that some selling pressure is to be expected in the near term.