Shiba Inu: What could be the reason for SHIB’s rally over the weekend
- SHIB’s Altrank hit #1, which was a major bullish signal.
- Whale activity around SHIB was high, and other metrics remained bullish.
Shiba Inu [SHIB] continued to decouple from the market as its price remained bullish in the on-going bearish market condition. In fact, the memecoin became the top crypto in the last 24 hours in terms of multiple metrics. The upward moving price action was likely to continue further as SHIB’s trading volume soared.
Is your portfolio green? Check the Shiba Inu Profit Calculator
A significant driving force behind this surge could be the upcoming event, in which major announcements will be made related to its much-awaited Shibarium.
Shiba Inu’s popularity is winging its way up
Santiment posted a tweet on 6 August highlighting the fact that Shiba Inu managed to pump its price by more than 51% in just under four weeks. Not only was the memecoin’s price action bullish, but the uptrend was also accompanied by a massive hike in its trading volume. In fact, SHIB’s trading volume recently reached the highest level since 6 February 2023.
? #ShibaInu has jumped another +15% in the past 24 hours alone, and a few indicators support the rally continuing. Trading volume is supporting the pump in a big way, & it doesn't look like there are many #hodlers moving their $SHIB to exchanges to sell. https://t.co/g9ECBIgK3N pic.twitter.com/G2vtYpEMIh
— Santiment (@santimentfeed) August 6, 2023
Additionally, LunarCrush also pointed out a major bullish signal for SHIB. As per the tweet, SHIB hit #1 Altrank, increasing the chances of a continued uptrend. The memecoin reached this rank as its social and market activity remained on top.
According to CoinMarketCap, Shiba Inu’s price shot up by over 14% and 7% in the last seven days and past 24 hours, respectively. At press time, it was trading at $0.000009726 with a market capitalization of more than $5.7 billion.
??With leading combined social + market activity vs. the entire crypto market, Shiba Inu has hit the #1 LunarCrush AltRank™!
— LunarCrush (@LunarCrush) August 5, 2023
Investors are buying Shiba Inu
A look at the memecoin’s supply suggested that investors were actively buying the token. For instance, SHIB’s supply on exchanges declined while its supply outside of exchanges increased. To be precise, SHIB’s supply in exchanges reached the lowest level since April 2021.
Whale activity around the token also spiked, as evident from the rise in its whale transaction count. Moreover, Whalestats’ data revealed that SHIB ranked fourth on the list of cryptos that the top 100 ETH whales were holding in the last 24 hours.
Will the uptrend continue?
A look at Shiba Inu’s on-chain metrics revealed that the possibility of a continued uptrend was high. For instance, SHIB’s exchange reserve was declining. As per Santiment’s chart, SHIB’s exchange outflow also spiked, meaning that the memecoin was under buying pressure.
Its MVRV Ratio also spiked considerably, which was bullish. In addition to that, SHIB’s 1-week price volatility also shot up, increasing the chances of a further northbound price movement.
Realistic or not, here’s SHIB’s market cap in BTC terms
Not only SHIB, but BONE ShibaSwap [BONE], another major token for Shibarium, also registered growth. The memecoin’s price increased by more than 13% in the last seven days. At press time, it was trading at $1.67 with a market capitalization of over $383 million.
However, BONE’s daily chart was painted red as its value dropped by over 2%. It will be interesting to watch whether BONE will once again follow SHIB’s price action ahead of Shibarium’s launch.