Shiba Inu [SHIB] experienced a surge in price during the latter part of September, capturing the attention of bullish investors. Between the 18th of the month and the subsequent nine days, SHIB witnessed a notable 67.36% increase, although it fell short of breaking through the bearish order block at $0.000021.
Subsequently, a retracement pushed SHIB below the crucial support level of $0.0000175. Recent analysis suggests that this movement may indicate a growing bearish market sentiment. Are traders bracing themselves for further declines, or is this simply a temporary setback before a potential upward trend?
Shift in Shiba Inu Sentiment
The market sentiment towards Shiba Inu took a significant turn by the end of September. It reached levels unseen in the past three months, surpassing the positive sentiment observed during the mid-August rally.
Furthermore, the daily active addresses for Shiba Inu reached a new peak, a level not seen since May on the 29th of September. Both indicators pointed towards a strong bullish sentiment that has since waned over the past four days.
There were noticeable spikes in the age consumed metric over the last two days, indicating increased token movement between addresses and suggesting an uptick in selling pressure.
Analysis from Short-Term and Long-Term Holders
While the 30-day MVRV remains positive, indicating that short-term SHIB holders are still reaping profits on average, the 180-day MVRV dipped below zero after briefly rising during the recent rally.
This indicates that long-term holders might have opted to exit their positions at a breakeven point, particularly due to the downward trend in the memecoin since May.
Additionally, the network growth metric surged alongside the price, signaling an increase in market participants. The mean coin age has been steadily decreasing since late August, suggesting that long-term holders might have started redistributing their holdings during that period.
Thus, the rally to $0.0000217 likely marked a temporary top for Shiba Inu. It appears that a new accumulation phase may be necessary before the memecoin can replicate the gains seen in September.