Shiba Inu eyes double-digit gains with bullish signs from on-chain data
- Shiba Inu active addresses hit highest level since June, up nearly 75% in September.
- Social dominance is at its six-month peak, at 1.81%, signaling higher relevance and mentions among traders.
- Shiba Inu erases nearly 12% supply on exchanges in 2024, down to 73.08 trillion on Friday.
- SHIB eyes over 12% gains as on-chain metrics and technical indicators turn bullish.
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.
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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.
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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.
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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.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
