Shiba Inu price looks set for recovery as SHIB on-chain metrics turn bullish
- Different cohorts of holders are accumulating Shiba Inu tokens, supporting price gains.
- SHIB token supply on exchanges has declined in the past month.
- Shiba Inu ventures into physical merchandise for Web3 companies with “Shibacals.”
Shiba Inu (SHIB) token accumulation by both retail and large wallet investors over the last month supports the thesis that the asset’s recent price gains could further extend. The increasing acquisition of the token has come together with a corresponding decline in supply on exchanges, reducing the selling pressure on the meme coin. Shiba Inu trades at $0.00000966 at the time of writing, posting a 5% weekly gain.
Shiba Inu on-chain metrics support bullish outlook
Based on data from crypto intelligence tracker Santiment, SHIB’s supply on exchanges has declined over the last month. SHIB token supply on exchanges has dropped 0.51 percentage points since November 12, from 8.36% to 7.85%.
Generally, when supply on exchanges declines, the selling pressure on the asset diminishes. In the same timeframe, the data also shows large spikes in SHIB exchange flows. These outflows have reduced SHIB reserves on exchange platforms, likely supporting the meme coin’s gains.
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Shiba Inu supply on exchanges and exchange flow balance. Source: Santiment
As for the meme coin’s accumulation in the last month, Santiment data shows SHIB holders in four different cohorts – holding between 10,000 and 100 million SHIB tokens – increased their holdings of the dog-themed cryptocurrency.
Typically, the accumulation of the asset is considered a bullish sign. When combined with the decline in SHIB supply on exchanges, it signals that the meme coin’s price could increase further.
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Shiba Inu accumulation by SHIB holders. Source: Santiment
Another key on-chain metric, Network Growth – which used to determine the relevance and adoption of SHIB among traders – also points to a recovery in Shiba Inu price. Shiba Inu’s Network Growth is consistent with the price increase seen in the 30-day timeframe. There is no bullish or bearish divergence in Network Growth, so the metric supports Shiba Inu’s current price trend.
 [12.14.18, 12 Dec, 2023]-638379651538795414.png)
Shiba Inu Network Growth. Source: Santiment
Shiba Inu ventures into physicals with Shibacals
The Shiba-Inu-themed project’s lead developer, Shytoshi Kusama, said on Saturday that Shiba Inu has associated with Shibacals, a firm that helps Web3 companies and produces physical merchandise. Shibacals recently partnered with Busta Rhymes, better known as Trevor George Smith Jr, an American rapper and songwriter. The partnership is aimed at the production of collectibles titled “Chooky.”
Shytoshi tweeted about the development in a recent post on X.
Note NFT is a misnomer here, and physicals (Shibacals) are the core focus, but yes and yes. #bustarhymes #shibacals #chooky https://t.co/X3OfO0KGUu
— Shytoshi Kusama™ (@ShytoshiKusama) December 9, 2023
The news about Shiba Inu’s expansion into physical merchandise supported SHIB’s price gains over the weekend.
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.
