- The price of Shiba Inu has increased by only 3% in the last seven days.
- The numbers looked bearish, but some indicators suggested otherwise.
While several cryptos posted double-digit gains last week, Shiba Inu [SHIB] wasn’t lucky enough. Although the price of the memecoin rose, the growth was significantly less than that of the top cryptos.
However, the scenario may change in the coming days. Let’s see what’s going on.
Are Investors Buying Shiba Inu?
Top cryptos like Bitcoin [BTC] And Ethereum [ETH] registered a growth of more than 10% in the last seven days. However, SHIB failed to do so.
According to CoinMarketCapthe price of SHIB had only risen by more than 3% in the past week. At the time of writing, SHIB was trading at $0.00001797 with a market cap of over $10.5 billion, making it the 13th largest crypto.
But the scenario could soon change as LUCIE, a popular X-handle who posts updates related to the Shiba Inu ecosystem, posted tweet point to a remarkable development.
According to the tweet, 2.7 billion SHIB, worth $48,343,500 at the time, was transferred from Robinhood to an unknown wallet. This development indicated that a whale was purchasing a substantial number of SHIB tokens, indicating a possible price increase in the coming days.
AMBCrypto then checked Santiment’s data to find out if buying pressure was high. According to our analysis, the supply of SHIB at prime addresses increased last week, meaning whales were actively stocking SHIB.
However, the rest of the statistics showed that selling pressure was dominant in the market. For example, SHIB’s supply on the exchanges increased sharply, while the supply outside the exchanges fell.
Moreover, currency inflows also increased, further demonstrating that investors were selling SHIB.
Source: Santiment
SHIB’s latest problems
Generally, an increase in selling pressure results in price corrections. Apart from this, some other statistics also pointed to the same outcome. The memecoin’s NVT ratio shot up, meaning the token was overvalued, which could cause a price correction.
Another bearish metric was the MVRV ratio, which fell over the past week. Nevertheless, Shiba Inu’s network growth remained high, meaning more new addresses were created to transfer the token.
Source: Santiment
We then looked at SHIB’s daily chart to better understand what to expect. Contrary to the statistics, most market indicators were bullish. The technical indicator MACD showed a clear bullish upper hand on the market.
Realistic or not, here it is SHIB’s market capitalization in terms of BTC
SHIB’s Chaikin Money Flow (CMF) recorded a sharp increase, indicating a price increase in the coming days.
Nevertheless, the Money Flow Index (MFI) remained below the neutral line, looking bearish.
Source: TradingView
