Leading meme coin Shiba Inu (SHIB) has seen a significant price surge in recent weeks. Trading at $0.000017 as of this writing, SHIB has rallied 32% over the past month. On-chain data indicates that this growth has been largely fueled by increased holdings and reduced selling activities among short-term holders (STHs).
However, the sustainability of this rally remains uncertain. STHs are known for selling quickly when market conditions shift, which raises concerns about how long this upward trend can last. This analysis examines the potential for continued gains, factoring in the historically volatile behavior of this investor group.
Shiba Inu Short-Term Holders Are the Shot Callers
Shiba Inu STHs are investors who have held their coins for less than a month. An assessment of their coin holding indicates that their balance has spiked by 20% over the past 30 days.
When this occurs, it indicates that many market participants with short-term investment goals have increased their coin holdings. These traders hold a significant portion of any asset’s circulating supply; hence, their buying activity often results in an asset’s price rally.
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Furthermore, SHIB’s positive price daily active address (DAA) divergence confirms the surge in demand for altcoins over the past few weeks. This metric, which measures an asset’s price movements with the changes in its number of daily active addresses, is currently at 15.97%.
A price rally accompanied by a positive price DAA divergence is a bullish signal, suggesting growing interest and potential for further price appreciation.
Converesly, BeinCrypto’s assessment of the activity of SHIB’s long-term holders (LTHs) reveals that they have adopted a different approach. Over the past month, their coin holdings have reduced by 0.35%. This indicates that this group of investors has recently distributed their SHIB coins for profit.
SHIB Price Prediction: Short-Term Holders Are Not Reliable
Although the activity of SHIB STHs has propelled its price by double digits over the past month, this poses a risk to the coin. This group of investors is usually more reactive to sudden market fluctuations and can quickly sell off their positions if the price moves unfavorably.
Therefore, if these investors begin to sell, SHIB’s price may shed some of its recent gains and fall to support at $0.000012. If this level fails to hold, the meme coin’s price may plunge to its August 5 low of $0.000010.
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However, if the sentiment of SHIB’s LTHs shifts and they begin to accumulate more coins than they sell, the altcoin’s value may climb toward $0.000028.
The post Shiba Inu Eyes $0.000028 With Growing Support From Short-Term Holders appeared first on BeInCrypto.
