- SHIB’s technical indicators highlighted positive momentum, but a bullish trend still needs confirmation
- Rising transactions and lower reserves supported SHIB, but MVRV hinted at possible profit-taking
As a seasoned analyst with years of market observation under my belt, I find myself intrigued by Shiba Inu [SHIB]’s recent surge and the burning question: Will this momentum fuel long-term growth?
Today, Shiba Inu [SHIB] is creating headlines due to an astounding 14,575% increase in its token burn rate. This has resulted in the removal of 279 million tokens from circulation. This significant token destruction has ignited a surge of optimistic feelings, pushing SHIB’s price up by 3.43%, reaching $0.00001889 over the past 24 hours.
However, will this momentum fuel SHIB’s long-term growth?
SHIB technical analysis – Is the token poised for a rally?
The technical analysis of the memecoin suggests a tentative optimism, as the Moving Average Convergence Divergence (MACD) has just moved into positive territory, suggesting potential growth. Nevertheless, this early sign may not yet be robust enough, and more evidence is required to solidify a convincing bullish trend.
At the moment, the Relative Strength Index (RSI) stands at 60.85. This suggests that Shiba Inu isn’t showing signs of being overbought just yet, meaning there might still be an opportunity for its price to climb higher.
Consequently, it appears that SHIB’s upward trend might persist. But remember, investors need to tread cautiously and keep an eye out for more robust signs before making any moves.
Rising transactions and active addresses – A bullish sign?
Furthermore, an increase in network activity for SHIB strengthens its bullish argument. The number of active addresses rose significantly by 37.93%, reaching a total of 6,391 within the last 24 hours, as indicated by CryptoQuant data. Moreover, the transaction count more than doubled, spiking by 100% to reach 7,083.
The data shows increased user interest and rising need for the digital token. A surge in interactions usually means a stronger network. Moreover, this trend could potentially cause long-term price growth.
To keep the Shiba Inu’s growth trend, it’s crucial that the network continues to have high levels of activity.
Declining exchange reserves – What does it mean for SHIB?
At the moment of reporting, the reserve balances on exchanges decreased by about 0.04%, currently standing at approximately 138.61 trillion tokens. Typically, a reduction in exchange reserves indicates that fewer tokens are being offered for sale, suggesting that holders might be stockpiling instead of selling.
The development might lessen the urge to sell and potentially boost prices even more. Yet, a slight adjustment in reserves necessitates a measured optimism among traders, who ought to keep an eye on any substantial changes in this factor.
SHIB’s MVRV ratio – Should investors be cautious?
At the current moment, the MVRV (Market Value to Realized Value) ratio stood at 13.17%. This suggests that the token’s value might be slightly inflated, implying that short-term investors could potentially be holding onto substantial gains and may decide to cash out soon.
Currently, even though an increase in MVRV doesn’t automatically mean a price decrease will follow, it does suggest the presence of selling pressure. This pressure might restrict Shiba Inu (SHIB) from reaching higher prices.
Read Shiba Inu’s [SHIB] Price Prediction 2024–2025
From my perspective as a Shiba Inu coin investor, the surge in its burn rate has undeniably sparked enthusiasm. However, I find myself advocating for a measured optimism, as the technical signals suggest caution.
While an increase in transactions and users seems positive, the Shiba Inu’s somewhat higher MVRV ratio suggests that the pace of its growth might be moderated due to potential profit-taking.
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2024-10-17 12:08