SHIB Season Again? Shiba Inu Registers 10% Weekly Gain

SHIB Season Again? Shiba Inu Registers 10% Weekly Gain

Key Insights

  • Shiba Inu has outperformed the broader crypto market over the past week, with double digit gains.
  • The memecoin's exchange reserves have been declining, suggesting that fewer people are selling.
  • Shiba Inu burn rate has increased, removing more tokens from circulation.
  • The memecoin's AltRank has hit an all-time high, indicating strong social and market activity.

Shiba Inu, the second largest memecoin on the market has emerged as the star crypto of the week, second only to the market leader BTC.

After the SEC's lawsuit against Binance and Coinbase, the latest FED announcement, and the depeg of Tether USD in the first week of June, the entire crypto market was left in a sea of reds.

Bitcoin price, for instance has gained momentum reaching above the $30,000 mark, pulling the rest of the crypto market up with it.

Bitcoin is up by as much as 13%, and Ethereum has recovered most of its losses by now. One cryptocurrency, however, stands out from the pack, and that crypto is SHIB.

SHIB has performed better than several of the market's cryptos, beating Solana, Dogecoin, Polygon, Binance Coin (BNB) and Bitcoin itself, with a 10% move to the upside over the last seven days, as per data from CoinMarketCap.

SHIB has also smashed metrics like Alt Ranks, decreasing Exchange reserves, an increasing number of active addresses, and a lot more.

In this article, we pick things apart and analyze what has been going on with SHIB over the last week, and what you, dear reader, should expect next.

Shiba Inu Makes Waves (Spot Price Analysis)

The bulls and whales are starting to converge as far as SHIB is concerned. Over the better part of the year, SHIB has been largely bearish. The memecoin came crashing down from its $0.000015 high at the beginning of February, to $0.000008 in the first few days of June.

<em>Shiba Inu's performance | Source: TradingView</em>
Shiba Inu's performance | Source: TradingView

And while many expected the memecoin to hold its ground and make its way upwards from this level, SHIB came crashing down with the rest of the crypto market and hit a $0.000005 low sometime on 10 June, when the rest of the crypto went down.

Shiba Inu's recovery has been impressive so far. In no time, the memecoin will be ready to take another shot at the $0.000010 resistance.

At this point, one might argue that SHIB is headed for a fresh wave of bullishness, based on a few pointers.

One of these is how:

Shiba Inu's Exchange Reserves In A Dip

There are a few things to understand about exchange reserves.

  1. People typically send their crypto to exchanges to be sold.
  2. If this is true, then if a cryptocurrency's exchange reserves go up, it means that fewer people are HODLing, and more are actually selling.
  3. When a cryptocurrency's exchange reserves come down, it means that fewer people are selling.
  4. If the laws of demand and supply hold, then if there are fewer SHIB in circulation, the better the chances that the memecoin's price will increase.

According to data from Santiment, the third scenario above applies to SHIB.

<em>SHIB Supply on Exchanges</em>
SHIB Supply on Exchanges

According to Santiment, the quantity of SHIB on exchanges has been on a steady decline since 20 March and currently sits at 87.6 trillion SHIB.

In the case of SHIB, the price climbing, and exchange supply's decline signals fresh optimism about the token's value.

SHIB May Indeed be headed for better days.


SHiba Inu's Burn Rates And AltRank Hit The Roof

Shiba Inu's burn rate has also been impressive lately. More than twice the coins the last SHIB burn were destroyed in the last 24 hours, removing 10.8 million SHIB from circulation.

<em>SHIB Burn rate spikes</em>
SHIB Burn rate spikes

Another positive signal n Shiba Inu is the tweet from LunarCrush, sometime on Sunday this week.

According to a tweet from the crypto insights platform, Shiba Inu has an AltRank of 1 out of the top 4,481 coins in the market based on relative combined social and market activity.

Fewer Shiba Inu Users "In The Money" – IntoTheBlock

News can't always be positive, can it?

As expected from the memecoin's 50% dip from February until date, IntoTheBlock has some news.

As it happens, IntoTheBlock reports that 91% of Shiba Inu owners are currently losing money on their investments.

The analytics platform notes that, just 7% of Shiba Inu investors are currently in profit, as far as their Shiba Inu holdings go.

On the other hand, 91% of all holders are either losing money or are out of money on their investments.

Meanwhile, IntoTheBlock data also shows that the Shiba Inu transaction volume in the previous 24 hours was 767.35 billion SHIB, clearly indicating that whales are somehow involved.

A Good Time To Buy Or Sell Shiba Inu?

The short answer to this would be "It depends on $0.0000078".

The longer answer would require some charting.

<em>Shiba Inu price action</em>
Shiba Inu price action

From the chart above, we can see that

  1. Shiba Inu's price action shows that the price is currently below its major moving averages
  2. Shiba Inu has only just risen from oversold conditions. Before considering buying of any kind, it is better to wait for the RSI to rise past the neutral level.
  3. If Shiba Inu is to have any chance at bullishness, it must first break through $0.0000078.

From this, we can see that if Shiba Inu remains below the $0.0000078 zone (red line), there is no chance of the bulls causing a recovery.

<em>Shiba Inu's possible price action</em>
Shiba Inu's possible price action

If the bulls are unable to initiate a breakout from $0.0000080, Shiba Inu will likely get rejected at $0.0000080, and enter an even deeper correction.

The best time to buy would be anywhere after a clean break and close above this zone.

The Verdict: Shiba Inu is bearish at the moment, and should be studied and analyzed, rather than traded for the time being.

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

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