Shiba Inu’s double-digit rally: What’s driving it?

• SHIB’s price has seen growth in the past few days.
• Its weighted sentiment is at its highest in two months.

Shiba Inu’s [SHIB] price has rallied by double digits in the past three days amid the general uptick in the altcoin market. In a recent post on X, on-chain data provider Santiment noted that the value of the leading memecoin has increased by 12% during that period.

It has also witnessed a surge in its trading volume in the past few days. As of 29th May, SHIB’s daily trading volume totaled $2.11 billion, representing its highest since 17th March.

Source: Santiment

SHIB is ready for more growth

An assessment of some of SHIB’s key technical indicators on a 1-day chart confirmed that the recent growth in SHIB’s price is backed by real demand for the altcoin. 

For example, its Relative Strength Index (RSI) and Money Flow Index (MFI) were 62.90 and 65.64 and in uptrends as of this writing. These values showed that SHIB market participants favored accumulating more of the meme coins over distributing their current holdings. 

Further, SHIB’s Chaikin Money Flow (CMF), which tracks the flow of money into and out of the meme coin market, was above the zero line at press time. Spotted at 0.02, the value of SHIB’s CMF showed that buying pressure outpaced selling activity.

To confirm the strength of the current trend, AMBCrypto assessed SHIB’s Aroon Up Line and found that its value was 92.86%. 

This indicator identifies an asset’s trend strength and potential trend reversal points in its price movement. When the Aroon Up line is close to 100, it indicates that the uptrend is strong and that the most recent high was reached relatively recently. 

Lending credence to the above position, readings from SHIB’s Moving Average Convergence Divergence (MACD) showed its MACD line (blue) resting above its signal (orange) and zero lines.

When these lines are arranged this way, the asset’s shorter-term moving average is higher than its longer-term moving average, signaling that the asset may likely continue its uptrend. 

Source: SHIB/USDT, TradingView

Read Shiba Inu’s [SHIB] Price Prediction 2024-25

At press time, the value of SHIB’s weighted sentiment was 2.66, its highest level since 4th March, according to Santiment’s data. 

Source: Santiment

This indicates that social media discussions about SHIB are more positive now than they have been in the past two months.