- Shiba Inu price shows an uptick in social media dominance.
- One hundred thirty million dormant tokens have recently entered the circulating supply.
- Invalidation of the bearish thesis is a breach above $0.00001700.
Shiba Inu price shows interesting on-chain metrics, which hint that the market bottom is not yet secure.
Shiba Inu price could fall again
Shiba Inu price currently auctions at $0.00001204 as the bears have rejected the notorious meme coin from the 8-day simple moving average. Though the bullish countertrend rally has not been entirely liquidated, a few factors underneath the hood hint at a bearish stronghold.
According to Santiment’s Daily Active Addresses, the SHIBA token has seen a significant recent uptick in active daily addresses. The slight uptick from 4,600 to the current reading at 6,200 suggests whales may be onboarding their SHIB tokens to exchanges with plans to sell soon.
Additionally, the SHIB price witnessed a massive influx of dormant tokens entering the market during the first week of August. According to the indicator, 130 million tokens that had never been moved in the last two years were suddenly transferred. This is a very concerning signal as, statistically, upticks in circulating tokens usually result in drastic crypto sell-offs.
Santiment's Daily Active Addresses, Social Dominance, 2 Year Dormant Circulation Indixators,
Lastly, the Shiba Inu price has witnessed an uptick on all social media platforms. With a social dominance performance nearly doubling over the summer compared to the spring, this can be viewed as a contrarian bearish signal. Statistically, the indicator shows the world's famous dog coin does not jump in price when everyone is watching.
In summary, the Shiba Inu price could set up a cataclysmic decline. Based on the technical and on-chain metrics, the liquidity under the July 13 low at $0.00000976 stands a high chance of getting breached.
Invalidation of the bearish thesis is a breach above $0.00001700. If the bulls can take out this level, they could catalyze the next Shiba bull run with targets in the $0.00002400 zone, resulting in a 100% increase from the current market value.
In the following video, our analysts deep dive into the price action of Shiba Inu, analyzing key levels of interest in the market. -FXStreet Team
