• Shiba Inu price is nurturing an uptrend, recording higher lows over the last three days amid growing momentum.
  • SHIB could rise 10% with the first opposition presented by the 50-day EMA at $0.00000828.
  • However, the uptrend is barely sustainable with 93.65% of wallets currently suffering losses.

Shiba Inu (SHIB) price is trading with a bullish bias after a steep 10% fall beginning in late August. After finding support, the meme coin is brewing an uptrend. However, it faces strong opposition from the many addresses looking to close their positions to avoid suffering more losses.

Also Read: Dogecoin likely in the accumulation phase with 20% DOGE wallets sitting on unrealized profits

Shiba Inu price lifts off

Shiba Inu (SHIB) price is rising, up almost 5% in the last three days, with the Relative Strength Index (RSI) momentum indicator showing growing optimism. If sustained, SHIB could make an 8% recovery to confront the first hurdle at $0.00000828, presented by the 50-day Exponential Moving Average (EMA).

In a highly bullish case, Shiba Inu price could overcome this barricade, and the next level at $0.00000846 before confronting the resistance confluence between the horizontal line and the 200-day EMA at $0.00000908. Such a move would denote a 20% climb above current levels.

SHIB/USDT 1-day chart

SHIB on-chain metrics say otherwise

While the ascent seems plausible for SHIB, abounding overhead selling pressure will not allow it. According to the on-chain metric Global In/Out of the Money (GIOM) from crypto intelligence tracker IntoTheBlock, at the current price of $0.00000769, 93.65% of the addresses are currently underwater (out of the money). Only 3.52% is sitting on unrealized profit (in the money) while 2.84% are breaking even (at the money).

DOGE wallet addresses in the profit vs. making losses

With more addresses currently making losses, two scenarios are present. They either will exit the market once they break even, or will play the long game, giving Shiba Inu price the chance to recover.

Santiment data’s active deposit and exchange inflow metrics have recorded significant increases, with the trajectory often pointing to the intention to sell. When holders move their assets to exchanges, it is often because they plan to liquidate them for cash or trade them for better prospects. 

SHIB Santiment data active deposit, exchange inflow

The ensuing selling pressure from the 920.02 trillion addresses (or part of them) looking to escape further losses, could see Shiba Inu price decline, possibly retracing to the $0.00000718 support level.

In the dire case, SHIB could extend to the demand zone at around $0.00000687. Chances of another attempt north could present here, where buying pressure is expected.

Cryptocurrency metrics FAQs

What is circulating supply?

The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. Since its inception, a total of 19,445,656 BTCs have been mined, which is the circulating supply of Bitcoin. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.

What is market capitalization?

Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value. For Bitcoin, the market capitalization at the beginning of August 2023 is above $570 billion, which is the result of the more than 19 million BTC in circulation multiplied by the Bitcoin price around $29,600.

What is trading volume?

Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.

What is funding rate?

Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Ethereum continues hinting at rally following reduced long liquidations

Ethereum continues hinting at rally following reduced long liquidations

Ethereum has continued showing signs of a potential rally on Tuesday as most coins in the crypto market are also posting gains. This comes amid speculation of a potential decline following FTX ETH sales and normalizing ETH risk reversals.

More Ethereum News

HBAR price jumps 75% as BlackRock tokenizes Money Market Fund on Hedera

HBAR price jumps 75% as BlackRock tokenizes Money Market Fund on Hedera

Archax, Ownera and The HBAR Foundation have enabled the first tokenization of BlackRock’s money market fund (MMF) on Hedera. Last year Hedera Council member abrdn’s successfully tokenized its MMFs on Hedera. 

More Hedera News

Bitcoin price holds above $66K as Morgan Stanley files prospectus to add BTC ETF exposure in two of its funds

Bitcoin price holds above $66K as Morgan Stanley files prospectus to add BTC ETF exposure in two of its funds

Bitcoin (BTC) price remains range-bound, holding above the $63,000 level, while its upside is capped below $68,000, going against or delaying the assumption that the fourth halving would be a 'sell-the-news' outcome. 

More Bitcoin News

Crypto community reacts as BRICS considers launching stablecoin for international trade settlement

Crypto community reacts as BRICS considers launching stablecoin for international trade settlement

BRICS is intensifying efforts to reduce reliance on the US dollar after plans for a stablecoin effort surfaced online on Tuesday. Most people expect the stablecoin to be backed by gold, considering BRICS nations have been accumulating large holdings of the commodity.

More Cryptocurrencies News

Bitcoin: BTC post-halving rally could be partially priced in Premium

Bitcoin: BTC post-halving rally could be partially priced in

Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days? 

Read full analysis

BTC

ETH

XRP