Shiba Inu eyes double-digit gains with bullish signs from on-chain data

Shiba Inu (SHIB), the second largest meme coin notes a spike in active addresses and social dominance two key on-chain metrics. 

Active addresses is a metric used to identify the activity in a meme coin, interest and demand among market participants. 

Shiba Inu on-chain metrics turn bullish

According to data from crypto intelligence tracker Santiment, there is a spike in active addresses on SHIB. The metric hit its highest level since June, per Santiment data. Active addresses in a 24-hour period have climbed nearly 75% from a month earlier. 

Santiment active addresses over 24-hour period

The social dominance metric used to identify the relevance and mention of a cryptocurrency across social networks like X shows a large increase as well. The metric hit its highest level in nearly six months, at 1.81%, according to Santiment data. Shiba Inu’s mentions of social media increased, and this is likely due to the recent spike in the asset’s price when it noted a 21% intraday gain earlier this week. 

Social dominance vs price 

The meme coin’s supply on exchanges has declined nearly 12% since the start of the year, down to 73.08 trillion on Friday. Decline in exchange supply is correlated with decreasing selling pressure as lower volumes of the token are available across wallets in exchange platforms. 

Shiba Inu exchange supply

Shiba Inu eyes over 12% gains

Shiba Inu started its multi-month downward trend after hitting the March 2024 top of $0.00004567. SHIB rallied nearly 21% on Thursday this week. The meme coin is likely primed for further gains and could rally another 12.8% toward its target of $0.00002415, the lower boundary of the Fair Value Gap (FVG) between $0.00002494 and $0.00002415. 

SHIB could find support in the FVG between $0.00001576 and $0.00001875 in the event of a correction in the meme coin’s price. 

The Moving Average Convergence Divergence (MACD) indicator flashes green histogram bars, increasing in sizes, meaning there is rising positive momentum underlying the SHIB price trend. This supports a bullish thesis for Shiba Inu. 

SHIB/USDT daily chart

A daily candlestick close in the FVG between $0.00001576 and $0.00001875 could invalidate the bullish thesis for the meme coin and send SHIB to collect liquidity at $0.00001388.