CoinW reported:
The buying pressure of Shiba Inu has increased in the past few days. Derivatives indicators also show optimistic signs for the meme coin.
Shiba Inu [SHIB] is the world’s second-largest meme coin, and after a steep decline in the past week, it is poised for a comeback. The significant price increase in the past 24 hours has brought hope of a longer bull market for investors.
Therefore, it is worth taking a look at SHIB’s recent situation.
The bull run of Shiba Inu secures safety belts
Last week, the market was dominated by bears, pushing the price of SHIB down to $0.000013. However, the bull market now entering at a double-digit price increase marks their entry. In fact, according to CoinMarketCap data, the altcoin’s price has risen by 17% in the past 24 hours.
At the time of writing, SHIB’s trading price is $0.00001543, with a market capitalization of over $9 billion, ranking it as the 13th largest cryptocurrency.
The price increase has also had a positive impact on the sentiment of meme coin trading. Analysis of Santiment data by AMBCrypto shows an increase in supply outside exchanges for SHIB, while the supply on exchanges has decreased, indicating that investors have been buying Shiba Inu. The surge in off-exchange outflow further proves strong buying pressure for this coin.
However, whales did not take significant action last week, and the stable supply of top addresses also confirms this.
In addition, Shiba Inu’s MVRV ratio also increased significantly on July 8th, attributed to its recent price hike. However, it seems that not everything is favorable for the meme coin.
For example, its network growth rate has decreased, indicating a reduction in new addresses used to transfer tokens. Its velocity has also decreased. The decline in this indicator signifies a reduced frequency of SHIB usage in trading over a certain period of time.
Will SHIB’s rebound continue?
To better understand the expectations for the meme coin, AMBCrypto examined its derivatives indicators. Our analysis of Coinglass data shows a significant increase in SHIB’s long/short ratio.
An increasing long/short ratio indicates a higher number of long positions held relative to short positions. This data indicates that bullish sentiment is generally present throughout the market.
Furthermore, at the time of writing, SHIB’s fear and greed index stands at 31%, indicating a “fear” stage in the market.
Whenever the index reaches this level, it suggests a high likelihood of price increase.
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Finally, the MACD technical indicator shows the possibility of a bullish crossover.
Additionally, the relative strength index has exited the oversold zone. This can be interpreted as a bullish signal for the cryptocurrency.