Shiba Inu’s slow week: Could a $48M transaction turn the tide?

• Shiba Inu’s price increased by only 3% in the last seven days. 
• The metrics looked bearish, but a few indicators suggested otherwise. 

While several cryptos registered double-digit gains last week, Shiba Inu [SHIB] wasn’t fortunate enough. Though the memecoin’s price increased, the degree of growth was considerably less than that of the top cryptos.

However, the scenario might 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 more than 10% growth over the last seven days. However, SHIB couldn’t manage to do so.

According to CoinMarketCap, SHIB’s price had only risen by over 3% in the past week. At the time of writing, SHIB was trading at $0.00001797 with a market capitalization of over $10.5 billion, making it the 13th largest crypto.

But the scenario might change soon as LUCIE, a popular X handle that posts updates related to Shiba Inu’s ecosystem, posted a tweet highlighting a notable development.

As per the tweet, 2.7 billion SHIB, which were worth $48,343,500 at the time, were transferred from Robinhood to an unknown wallet. This development indicated that a whale bought a substantial number of SHIB tokens, hinting at a possible price rise in the coming days.

AMBCrypto then checked Santiment’s data to find out whether buying pressure was high. As per our analysis, SHIB’s supply held by top addresses increased last week, meaning that whales were actively stockpiling SHIB.

However, the rest of the metrics revealed that selling pressure was dominant in the market. For example, SHIB’s supply in exchanges increased sharply while its supply outside of exchanges dropped.

Additionally, its exchange inflow also spiked, further establishing the fact that investors were selling SHIB. 

Source: Santiment

SHIB’s latest troubles 

Generally, a rise in selling pressure results in price corrections. Apart from this, a few other metrics also hinted at the same outcome. The memecoin’s NVT ratio shot up, meaning that the token was overvalued, which can cause a price correction.

Another bearish metric was the MVRV ratio, as it declined over the last week. Nonetheless, Shiba Inu’s network growth remained high, meaning that more new addresses were created to transfer the token.

Source: Santiment

We then took a look at SHIB’s daily chart to better understand what to expect. Unlike the metrics, most market indicators were bullish. The technical indicator MACD displayed a clear bullish upperhand in the market. 

Realistic or not, here’s SHIB’s market cap in BTC’s terms

SHIB’s Chaikin Money Flow (CMF) registered a sharp uptick, indicating a price increase in the coming days.

Nonetheless, the Money Flow Index (MFI) was resting under the neutral mark, which looked bearish. 

Source: TradingView