- Buying pressure on SHIB was high last week.
- Market indicators hinted at a few slow-moving days ahead.
Memecoins have remained one of the top crypto categories over the past few months as their popularity skyrocketed. Shiba Inu [SHIB] was one of the top performers among the memecoins on the social front.
But will popularity be enough for SHIB investors to earn profits?
A look at Shiba Inu’s social metrics
LunarCrush recently posted a tweet highlighting Shiba Inu’s performance on the social front during the past six months. As per the tweet, the memecoin’s posts with interactions surged by over 96,000%. Its total interactions alone increased by over 12,000%.
These datasets clearly reflect the massive hike in SHIB’s popularity in the crypto space. AMBCrypto’s analysis of Santiment’s data revealed that bullish sentiment around the token was dominant in the market for several weeks during the last 30 days.
Source: Santiment
However, SHIB’s soaring social metrics failed to have a positive impact on the memecoin’s price action last month. According to CoinMarketCap, SHIB’s value dropped by more than 14% in the last 30 days.
But the scenario started to change last week as its price chart turned green. During the last seven days, SHIB’s price spiked by nearly 4%. At the time of writing, it was trading at $0.00002767 with a market capitalization of over $16.3 billion, making it the 12th largest crypto.
SHIB’s uptrend might not last
Since the memecoin’s weekly chart was green, AMBCrypto checked SHIB’s metrics to find out whether the uptrend would last. We found that Shiba Inu’s MVRV ratio improved over the last seven days.
Its exchange outflow also spiked several times, meaning that buying pressure on the memecoin was high. Nonetheless, the NVT ratio was concerning as it registered a sharp spike.
A rise in the metric means that an asset is overvalued, hinting at a possible price correction.
Source: Santiment
More red signals were revealed upon a check on SHIB’s technical indicators. The Relative Strength Index (RSI) went sideways near the neutral mark, suggesting that investors might witness a few slow-moving days.
Moreover, the Bollinger Bands indicated that SHIB’s price was in a less volatile zone, further decreasing the chances of an unprecedented price rise in the short term.
Source: TradingView
Read Shiba Inu’s [SHIB] Price Prediction 2024-25
It was interesting to note that while SHIB’s price increased last week, its ecosystem token Bone ShibaSwap [BONE] did not follow the trend.
BONE’s price dropped by nearly 2% last week. At the time of writing, BONE was trading at $0.6969 with a market cap of over $160 million.