- After a recent decline, active addresses on the network jumped.
- The NVT Signal showed that SHIB’s price was at a discount.
The power of the Shiba Inu [SHIB] community was reflected again as the active addresses had begun to surge. Between the 5th and 7th of March, the project registered a decline in active addresses. This happened after hitting a peak of 55,200 earlier.
Active addresses show the number of unique users involved in transactions. With the metric, you can tell if there is a high speculation around a token or not. Around the period the active addresses increased, the price hit a 213% seven-day increase.
Moments later, the metric dropped, and Shiba Inu’s price recorded a 6% 24-hour decrease. At press time, AMBCrypto observed that the metric had recovered to 18,200 and the value of the token also jumped 11%.
Source: Santiment
‘Meet me at the top,’ SHIB signals
However, it is noteworthy to mention that the metric is not the only determinant of the price action. The recent trend implies that SHIB might have a chance of repeating its earlier performance. While it might rise 200% in seven days, there is a chance that the value could try and retest $0.000040.
At press time, SHIB changed hands at $0.000033. Furthermore, AMBCrypto engaged Glassnode data and check the Network Value to Transaction (NVT) Signal.
The NVT Signal serves as a leading indicator to examine whether an asset is being priced at a premium or discount. Each time, the metric peaks, the value of SHIB plunged, and this was evident from the chart below.
However, the NVT Signal was 125.37 at press time, far below 207.19 that it was a few days ago. With this reading, one can assume that Shiba Inu was close to a short-term bottom. Therefore, the chances of an upswing have increased.
Source: Glassnode
Circulation drops as sentiment remains bullish
In addition to the aforementioned metric, AMBCrypto also considered the sentiment around SHIB. As of this writing, the Weighted Sentiment was 0.335— a little lower than what it was some days back.
Weighted Sentiment measures the unique social volume to assess if market players are bearish or bullish on a project. Since the metric was not in negative territory, it means that there were more positive discussions about Shiba Inu than gloomy ones.
In terms of the one-day circulation, Santiment’s on-chain data showed that it declined. At press time, the circulation was down to 3.01 trillion. The decrease implied that fewer tokens have been engaged in transactions since the 5th of March.
Source: Santiment
Read Shiba Inu’s [SHIB] Price Prediction 2024-2025
While this might have affected activity negatively, it does not do the same to the price. With a decreasing circulation, SHIB could face less selling pressure.
Therefore, its potential to rise higher, probably in the $0.000050 direction remains an option.
