- Shiba Inu’s trading volume dropped in the last 24 hours.
- Buying pressure on SHIB was high, but indicators looked bearish.
The market condition changed recently, allowing several cryptos to paint their charts green, and Shiba Inu [SHIB] was not left behind.
Though the meme coin managed to register promising gains, bearish sentiment around it remained high. Was this pump only an outcome of the bullish market, or are metrics backing it?
Shiba Inu finally turns bullish
The last week was in investors’ best interest as Shiba Inu’s price value dropped by more than 5%. However, as the market turned bullish, Shiba Inu also benefited from it.
According to CoinMarketCap, in the last 24 hours alone, the meme coin’s value increased by nearly 5% as well.
At the time of writing, the meme coin was trading at $0.00002845 with a market capitalization of over $16 billion. In the meantime, while SHIB’s price increased, its trading volume dropped in the last 24 hours.
More red flags were raised when AMBCrypto checked Santiment’s data. We found that despite the rise in price, investors’ confidence in Shiba Inu was low as its Weighted Sentiment remained in the negative zone.
This also meant that bearish sentiment around the meme coin was dominant in the market.
Source: Santiment
Will Shiba Inu’s bull rally last?
Since bearish sentiment around SHIB was high, we then checked other metrics to see what else supported this bull rally apart from the market condition.
We found that buying pressure on the meme coin was high, as evident from the rise in its Supply outside of Exchanges and a drop in its Supply on Exchanges.
The fact that investors were buying SHIB was also proved by its Exchange Outflow, which spiked quite a few times last week.
Source: Santiment
The price uptick also helped SHIB’s MVRV ratio improve, which indicated that the chances of a continued price uptick were high. However, the network-to-value ratio told a different story.
Notably, the ratio registered a sharp spike, hinting that Shiba Inu was overvalued, and hinting at an increased possibility of a price correction.
Source: Santiment
AMBCrypto’s analysis of SHIB’s technical indicators suggested that the meme coin’s bull rally might end soon. The Money Flow Index (MFI) registered a slight downtick.
Read Shiba Inu’s [SHIB] Price Prediction 2024-25
SHIB’s MACD also displayed a bearish upper hand in the market. Both of these indicators hinted at a price decline in the coming days.
Nonetheless, the Chaikin Money Flow (CMF) remained in the bulls’ favor as it went northwards towards the neutral mark of 0.
Source: TradingView
In summary, three things to pay attention to:
First, the meme coin’s surprising resilience, marked by a 5% increase in value despite a general trading volume dip, underscores the strong buying pressure and investor interest in SHIB.
Second, the contrast between its bullish price action and the lingering bearish sentiment, as highlighted by its weighted sentiment and technical indicators, paints a complex picture of SHIB’s current market dynamics.
Lastly, the high exchange outflow and the improvement in SHIB’s MVRV ratio suggest an optimistic outlook for the coin among its holders, even as potential overvaluation signals caution.
