Shiba Inu ‘Bullish’ Sentiment Boosts; Rally to $0.00002 Imminent?

Irrespective of the state of the market, members of the Shiba Inu Army have been quite active on social media platforms of late. On Thursday, it was a “trending” topic under the “Business & finance” genre on Twitter.

Source: Twitter

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Data from Lunar Crush supported the said “chitter-chatter refinement” narrative. According to the platform, Shiba Inu related social mentions have noted a 7.5% incline over the past week. The aggregate number of mentions during the said period hovered around 260k.

Sentiment plays a crucial role in determining the direction in which the price pendulum could swing. The bullish-bearish breakdown seemed to paint a favorable picture for Shiba Inu. Like illustrated below, over 251.38k mentions were bullish in nature. The same marked an 8.4% incline when compared to the previous week.

Bearish sentiment, on the other hand, has been evaporating. Only 3.8k of the total mentions were pessimistic in nature, marking a 17.4% decline over the last seven days.

Source: LunarCrush

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Shiba Inu price

Despite the sentiment being positive, Shiba Inu’s price has been making horizontal movements. In the weekly time window, the asset has noted a 1% downward deviation. Additionally, the market was characterized by lacklustre buying momentum at press time. Like shown below, the RSI has more or less been oscillating around the neutral zone, below its SMA [yellow], justifying the same.

SHIB/USDT by TradingView

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Peeking into the on-chain metrics pointed out that the number of new and active addresses joining the Shiba Inu network have been declining. Over the past seven days, the former has dropped by ~20%, while the latter has shrunk by ~4%.

Simply put, an address is considered to be active when it becomes a direct participant in a successful transaction. And new addresses, as such, gauge the number of fresh entrants into the ecosystem. Conventionally, the higher both the numbers, the better, for they hint towards improving participation by traders and investors. Ergo, the ongoing downtrend on these fronts could be one of the reasons why Shiba Inu’s price has not been able to incline, despite the bullish sentiment.

Source: ITB

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What to expect next?

If the state of affairs remain to be the same, then SHIB can be expected to consolidate and find solace around its EMA supports on the daily. However, if the participation improves and buying activity increases, SHIB has upside room to glide up to $0.000017.

The said level is the average buy price of more than 100k addresses. According to on-chain data from IntoTheBlock, these market participants have aggregately bought around a whopping 470 trillion SHIB tokens here.

Thus, only when Shiba Inu approaches the said price, it would face resistance from the investors who break-even because they’d be triggered to cash out. Until then, there’s no major hurdle from the on-chain perspective for SHIB.

Source: ITB

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