- Selling pressure on Shiba Inu increased slightly.
- Metrics suggested that SHIB was undervalued, hinting at a bull rally.
Shiba Inu [SHIB], the world’s second-largest meme coin, has gained immense popularity over the last few years. In fact, its popularity was only next to the king of cryptos, Bitcoin [BTC] in Europe.
But will the meme coin’s rise in popularity help it on the price front anytime soon?
Are investors selling Shiba Inu?
Shiba Inu recently posted a tweet revealing the fact that SHIB was the second-most searched crypto in Europe, only behind Bitcoin.
To check whether this also affected the meme coin’s social metrics, AMBCrypto took a look at Santiment. As per our analysis, SHIB’s Social Volume remained consistently high throughout the last week.
However, this popularity did not have a positive impact on market sentiment, as its Weighted Sentiment dropped substantially in the last few days.
Source: Santiment
As sentiment turned bearish, selling pressure on the meme coin also increased. The meme coin’s supply inflow also went up last week.
Notably, Shiba Inu’s Supply of Exchanges increased over the last week. This happened when the whales were not actively trading the token, which was evident from its flat supply held by the top address graph.
Source: Santiment
SHIB starts a bull rally?
Shiba Inu’s high popularity might indirectly have a positive impact on its price, despite selling pressure being high.
AMBCrypto’s analysis of Glassnode’s data revealed that SHIB’s Network Value to Transactions (NVT) ratio registered a sharp downtick.
For starters, the NVT ratio is computed by dividing the market cap by the transferred on-chain volume measured in USD.
Source: Glassnode
Whenever the metric drops, it means that the asset is undervalued. This indicates that the chances of a northbound price movement are high.
In fact, things had already started to get bullish for SHIB as the meme coin’s value surged by more than 5% in the last 24 hours.
At the time of writing, SHIB was trading at $0.00002932 with a market capitalization of over $17 billion, making it the 12th largest crypto.
Read Shiba Inu’s [SHIB] Price Prediction 2024-25
To see whether the uptrend would last, AMBCrypto checked Shiba Inu’s daily chart. Our analysis pointed out that SHIB’s Relative Strength Index (RSI) gained upward momentum.
The Money Flow Index (MFI) also went up, indicating that SHIB’s bull rally might last longer. However, the MACD remained in the sellers’ favor as it displayed a bullish upperhand in the market.
Source: TradingView
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