The Shibarium blockchain of Shiba Inu [SHIB] is currently observing an impressive 1,557% increase in active users and processing 1.76 million transactions daily. Naturally, this significant rise in on-chain activity has generated excitement within the SHIB community.
Nevertheless, can this surge in activity propel SHIB to break out, or will resistance continue to hinder the meme coin’s upward momentum?
MACD and RSI Indicators Sending Mixed Signals for SHIB
Upon examining Shiba Inu’s MACD and RSI indicators, several important signals come into play. The MACD appears to exhibit converging bars, suggesting a potential shift in momentum.
However, the MACD line remains slightly below the Signal line, indicating that a bullish trend has not fully developed. Furthermore, Shiba Inu’s RSI stands at 51.42, signaling a neutral sentiment in the market.
Essentially, this implies that while Shiba Inu is not currently oversold, it lacks the necessary momentum for a significant rally at the moment.
On-chain Data Reflects Cautious Sentiment
On-chain metrics provide insights into why SHIB’s recent price movements have been lackluster. SHIB’s net network growth shows a reading of -0.22%, indicating a slight decrease in network activity. Moreover, only 0.05% of Shiba Inu holders are classified as large holders, which is a mildly bullish signal but not strong enough to instill confidence.
The “In the Money” metric displays figures of -0.63%, suggesting that most holders are experiencing losses. Additionally, large transactions have decreased by -4.11%, indicating that significant investors are pulling back. Thus, despite some minor bullish indicators, bearish sentiments dominate SHIB’s on-chain outlook.
SHIB’s Exchange Flows and Trader Sentiment
Currently, exchange reserves for SHIB are on a declining trend, standing at 138.67 trillion Shiba Inu tokens. Typically, a decrease in exchange reserves indicates accumulation, as tokens are transferred from exchanges to private wallets, reducing selling pressures.
However, in the last 24 hours, SHIB’s reserve flow has slightly increased by 0.02%, hinting at potential short-term selling pressures. Furthermore, the long/short ratio shows that 52.05% of traders are short on SHIB, reflecting skepticism.
To sum up, while the rapid growth of Shibarium brings promising possibilities, Shiba Inu is encountering significant resistance both technically and in terms of market sentiments.
A breakout is feasible, but Shiba Inu must overcome its hurdles and boost market confidence to sustain any bullish momentum in the future.