Shiba Inu [SHIB] followed the other cryptocurrencies that were able to take advantage of the current market shift and show some green on their charts.
Despite the meme coin’s encouraging rise, there was still a lot of pessimism surrounding it. Is there data supporting this pump, or was it just a result of the optimistic market?
Shiba Inu’s bullish streak comes to a close
The previous week was a boon for investors, as the price of Shiba Inu fell by over 5%. But when things got good in the market, Shiba Inu also did well.
Even in the past day, the value of the meme coin has risen by about 5%, according to CoinMarketCap.
With a market cap of more than $16 billion, the meme coin was trading at $0.00002845 as of writing. Despite an uptick in price, trading volume for SHIB fell during the past day.
When AMBCrypto examined Santiment’s data, further warning signs emerged. We discovered that investors’ faith in Shiba Inu was low, as its Weighted Sentiment stayed in the negative zone, even though its price rose.
Because of this, the market opinion toward the meme coin was mostly negative.
Can the bull run in Shiba Inu prices continue?
We looked at additional data to determine if there was anything besides the market situation that supported this bull surge, since negative sentiment about SHIB was high.
The significant level of buying pressure on the meme currency was confirmed by the fact that its supply rose outside of exchanges while its supply fell on them.
Another piece of evidence that investors were purchasing SHIB was the fact that its Exchange Outflow increased multiple times last week.
Additionally, SHIB’s MVRV ratio improved as a result of the price increase, suggesting that the likelihood of the price increase continuing was strong. Nevertheless, a different narrative was revealed by the network-to-value ratio.
The ratio spiked significantly, suggesting that Shiba Inu was priced too high and raising the prospect of a price correction.
According to certain evaluations of SHIB’s technical indications, the bull run in the meme coin might be coming to a close shortly. A small decline was seen by the Money Flow Index (MFI).
A negative upper hand was also shown by SHIB’s MACD in the market. Both of these signs pointed to a possible price drop in the near future.
Despite this, the Chaikin Money Flow (CMF) continued to favor the bulls as it moved northward towards the neutral mark of 0.
So, three points to keep in mind:
- The fact that SHIB’s value increased by 5% despite a general decline in trading activity demonstrates the high level of interest and buying pressure among investors in the meme currency.
- The current market dynamics of SHIB are complicated, as seen by its weighted sentiment and technical indicators, which contrast with its bullish price movement and the persisting adverse sentiment.
- SHIB’s high exchange outflow and improved MVRV ratio indicate that holders are enthusiastic about the coin’s future, albeit they should be cautious due to probable overvaluation.