The price of Shiba Inus has fallen 11% over the past week, reflecting the overall decline in the market. Unlike other tokens, this decline did not cause a cascade of sell-offs among SHIB holders.
With bullish sentiment remaining stable, the cryptocurrency could be poised for a potential rebound or consolidation in the near future.
Shiba Inu Investors Keep Faith in Meme Coin
Historically, when SHIB holders find it difficult to resist selling, the price drops significantly – in most cases below the recent 11% decline. However, according to IntoTheBlock, the storage time for SHIB coins is increasing from December 8th.
As the name suggests, hold time measures the period during which a cryptocurrency is held without being sold or transacted. When it increases, it means that holders have refused to move their tokens between wallets or sell them, which is an optimistic move.
On the other hand, a decrease in retention time indicates a lack of confidence in short-term potential. In this case, holders liquidate some of their assets, causing downward pressure on the price.
Thus, the noticeable increase in Shiba Inu cases seems bullish for this token. If this continues, it could help speed up the price recovery.
Additionally, the daily active address (DAA) price divergence provides a strong signal for a potential recovery in SHIB. This metric evaluates user participation in the blockchain and its correlation with price trends, revealing important information.
A positive price deviation from DAA means increased network activity, often paving the way for higher prices. Conversely, negative divergence indicates decreasing activity, which usually signals bearish momentum.
Santiment’s data, as shown above, shows that the divergence between SHIB’s price and DAA has risen to 33.65%. If this trend continues, SHIB price could cross $0.000027 in the coming days.
SHIB Price Forecast: Bounce Coming?
On the daily chart, the accumulation/distribution (A/D) indicator has increased. The A/D indicator combines volume and price to assess whether a cryptocurrency is accumulating or selling.
When the value falls, it means that selling pressure is higher than accumulation pressure. On the other hand, rising A/D indicates rising buying pressure, as is the case with SHIB. However, bulls may have to defend support at $0.000024 to confirm this thesis.
If this happens, the price of SHIB could rise to $0.000034. However, if the bears break through the support, this may not be the case and the meme coin could fall to $0.000019.
