SHIB Rises in Europe: Potential Bullish Future Ahead

In A Nutshell

Shiba Inu (SHIB), recognized as the world’s second-largest meme coin following Bitcoin in popularity, particularly in Europe, exhibited a bullish trend in its price action last week. Despite a slight increase in selling pressure and indicators suggesting the meme coin was undervalued, SHIB’s social volume remained consistently high. An analysis of Shiba Inu’s network value to transaction (NVT) ratio and other key metrics hints at the potential for a continued bull rally. This article delves into the factors influencing SHIB’s market performance and offers insights into its future price trajectory.

Shiba Inu’s Popularity Surge

A recent tweet highlighted Shiba Inu’s status as the second-most searched cryptocurrency in Europe, trailing only behind Bitcoin. This surge in popularity, however, did not translate to a positive shift in market sentiment immediately. According to data from Santiment, while SHIB’s social volume stayed high, its weighted sentiment experienced a significant drop, leading to an increase in selling pressure and a notable rise in the supply of exchanges.

Indicators of a Bullish Trend

Despite the apparent selling pressure, Shiba Inu’s heightened popularity might be setting the stage for a price increase. An analysis of Glassnode’s data revealed a sharp decline in SHIB’s NVT ratio. Traditionally, a drop in this metric indicates that the asset is undervalued, suggesting a high potential for price appreciation. In fact, SHIB’s price surged by more than 5% in the last 24 hours, with the meme coin trading at $0.00002932 and a market capitalization exceeding $17 billion, ranking it as the 12th largest cryptocurrency.

Technical Analysis Insights

A closer look at Shiba Inu’s daily chart reveals promising signs for the meme coin’s future. The Relative Strength Index (RSI) and the Money Flow Index (MFI) both showed upward momentum, indicating that the bull rally might have staying power. However, the Moving Average Convergence Divergence (MACD) still displayed a bullish dominance in the market, suggesting that sellers have not completely lost their influence.

Our take

The recent developments surrounding Shiba Inu portray a complex but cautiously optimistic picture. While the increased selling pressure and bearish market sentiment could have deterred potential gains, the meme coin’s undervaluation and the subsequent bullish indicators suggest that the SHIB might be on the cusp of a sustained upward trajectory. Investors and traders should keep a close eye on SHIB’s social volume and market sentiment indicators, as these could provide early signals of the meme coin’s future movements. As always, market participants should conduct thorough research and consider multiple data sources before making investment decisions.

Sources:
– Santiment
– Glassnode
– TradingView