Shiba Inu (SHIB) achieved a remarkable feat on March 9 by reaching the top position on CoinMarketCap. However, the question remains what this increase means for the future price of the token.

Why is Shiba Inu popular?

Despite the trend of the world’s second largest meme coin on CoinMarketCap, Social Volume and Weighted Sentiment have declined, suggesting increasing bearish sentiment at the time of writing.

SHIB’s current trend seems to be mainly driven by its price trend, as its value has increased noticeably by 70% over the past seven days.

It was previously reported how this uptrend brought SHIB back into the top 10 list of cryptos by market capitalization.

In the last 24 hours, SHIB is up 6%. It currently trades at $0.00003547, with a market cap of over $20 billion.

Thanks to this price increase, more than 75% of investors in SHIB were profitable, according to IntoTheBlock data.

This is the suggestion of the metrics

We checked the Network Value to Transactions (NVT) ratio to determine whether SHIB will continue its upward trend. The analysis shows that after a strong increase, the NVT ratio decreased slightly. This generally points to an undervalued asset and indicates that the likelihood of a continued uptrend is high.

shiba inu shib

The involvement of major investors in the meme coin was high, as evidenced by the increase in the number of whale transactions.

It appears that the major players have also increased their positions, as supply held by top addresses has increased over the past seven days. Despite this, investors generally did not actively purchase SHIB during this period.

This was clearly reflected in SHIB’s on-exchange and off-exchange supply, both of which remained stable, indicating reduced buying and selling activity.

shiba inu shib

To get a better idea of ​​where SHIB may be heading in the coming days, the analysis focused on its daily chart.

Notably, SHIB’s Chaikin Money Flow (CMF) showed a downward trend, while the price of the meme coin reached the upper limit of the Bollinger Bands at that time.

When such a situation occurs, it may suggest that selling pressure on an asset is increasing, potentially hurting its price.

Nevertheless, the MACD remained in favor of buyers as it showed a bullish trend in the market.

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Source: https://cryptobenelux.com/2024/03/10/shiba-inu-shib-opmerkelijke-prestatie/



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