Highlights:
- Shiba Inu (SHIB) price breaks resistance but faces bearish network growth indicators.
- Token burns and staking reduce the circulating SHIB supply significantly.
- Volume drops as RSI signals overbought conditions may trigger a cooldown.
Shiba Inu (SHIB) has experienced an easily noticeable boom, having grown by 4.42% to $0.000017 when the reporting was made. This price flood occurs while long-term holders are actively engaged and momentum indicator signals are promising, but on-chain data is more ambiguous.
Although price has increased, the directions taken by network activity trends continue to lean largely against the positive. This heightens worries that the affirmation of such price gain can be maintained.
Price Breaks Above Key Technical Levels
Shiba Inu’s daily chart shows a breakout above the 100-day EMA, indicating a change in the trendline. Prices overran both the 50-day EMA at $0.00001366 and the 100-day EMA. It closed at $0.00001754, which has been high since early March, and highlights the resurgence of bullish sentiment from a consolidation stage.
The RSI has surged to 72.45, a sign that overbought territories are in place and may be the next to retreat soon. Simultaneously, the Stochastic RSI signals increased upward momentum since both signal lines trade above 89, which might indicate short-term exhaustion should the demand flag.
SHIB at CoinMarketCap has accrued 4.26% (Chart 2), making the market capitalization $9.72. With daily trading volume dropping to $528.32 Million (18.84%), the recent price rally is more likely due to existing than new market participants.
With a nearly $9.74 Billion fully diluted valuation (FDV) compared to its market cap, Shiba Inu demonstrates its limited inflation risk with its fixed total supply model. The total supply is 589.5 trillion SHIB, with 584.4 trillion being circulating.
The burn data of ShibaSwap (Chart 5) implies that 410.75 trillion tokens have been burned, shrinking the cryptocurrency’s effective float. More than 4.82 trillion SHIB is being locked in staking, reducing the number of tokens bought and sold in the pool.
On-Chain Signals Reflect Mixed Sentiment on the SHIB Price
Contrary to positive price action, IntoTheBlock’s (Chart 1) metrics broadly classify SHIB’s future as bearish. Three out of four main metrics suggest caution. Network growth contracted by 0.18%, large transaction volume dropped by 4.99%, and distribution among large holders did not shift.
The “In the Money” metric gives the only bullish signal. The fact that 6.81% of addresses have outperformed their entry costs implies that excitement has been heightened among the short-term holders.
However, cryptocurrency usage on Telegram has been declining steadily, with three-day engagement dropping by 0.31 %. This is a mirage of waning retail appetite with recent gains. Notwithstanding the drop, large deals over the last week totaling $334.43 Million indicate continued involvement by institutional or whale investors.
More insight into Shiba Inu’s holder data further reveals a continuous increase in the community’s maturity level. According to IntoTheBlock’s findings, it may be assumed that 78% of all SHIB addresses have held the token for over a year, revealing considerable long-term conviction from most SHIB holders.
Only 2% of user addresses are less than a month old, indicating declining speculative trading activity.
Regarding profitability, 49% have entered the green zone, while 46% are still within the red zone. This shows that though the token’s price has increased, many holders still haven’t been able to recover their initial purchase, and as such, there is a possibility of heightened selling pressures in the next period.
The distribution of SHIB to major holders floats around 74%, just as in previous estimations, highlighting the ongoing dominance of a tiny group of wallet holders.
SHIB stays significantly correlated to Bitcoin, with a coefficient of 0.87, meaning significant changes in BTC prices will still affect Shiba Inu.
Transaction figures show a strong Western pattern, with 53% of trading flow coming from Western markets and 47% from Eastern regions. This trend could represent better engagement from institutional buyers or much higher US and European coverage.