Shiba Inu [SHIB] has rallied 10.35% in 24 hours, following an altcoin market resurgence in the past three days. In this period, the Bitcoin [BTC] dominance has dropped.
Meanwhile, the altcoin market cap expanded by 7.59%, from $683.58 billion to $735.46 billion.
The memecoin market’s gains were led not by Dogecoin [DOGE] but by Pepe [PEPE]. The latter has shown surprising short-term strength against the rest of the market with a 27.7% move in a day.
A week ago, AMBCrypto had warned traders to expect a Shiba Inu price bounce. This was because of the imbalances, or fair value gaps, that the SHIB price action left behind on the 1-day timeframe.
This bounce appeared to be playing out, and some more gains can be expected in the coming days. Analysis of on-chain metrics showed that there was some network-wide accumulation underway.
Evidence for SHIB accumulation
Source: Santiment
In December, the age consumed metric saw a sizeable spike. This indicated a flurry of movement of Shiba Inu coins that had been dormant for a long while. At the same time, the mean coin age fell rapidly.
Together, they showed that both long-term and short-term SHIB holders were exiting the market in a panic. Since then, though the price has fallen lower, the mean coin age metric has been trending higher.
The age consumed metric has a few small spikes, but nothing as alarming as the surge in December. This was a sign of SHIB accumulation.
The average 3-month holder of the memecoin was still at a significant loss, according to the MVRV ratio. Contrary to appearance, this was a sign of short-term health for the rally.
The threat from profit-taking activity or break-even sellers was not imminent yet.
Source: Glassnode
The 7-day moving average of the dormancy metric agreed with these findings. Dormancy calculation is based on the coin days destroyed, which indicates distribution trends.
Low dormancy values reflect upon longer-term dormant SHIB not being transacted—holders did not exhibit a hurry to sell.
While the on-chain metrics showed that a selling wave was not in progress, that does not mean that a SHIB recovery is underway.
Final Summary
- The Shiba Inu price bounce came alongside a lack of long-term holder selling and network-wide accumulation.
- While these trends signal short-term price appreciation is possible, the longer-term price action remains bearish.
Source: https://ambcrypto.com/shiba-inus-rally-might-not-halt-yet-this-trend-shows/
