When the data obtained from Santiment is examined, it can be seen that the price of the beloved meme coin Shiba Inu (SHIB), may have started preparations for a potential rally after reaching a local price bottom level during intra-day transactions on October 5th.
Shiba Inu Analysis
It is a known fact that the Consumed Age metric is effective in calculating local bottoms. This metric is calculated by multiplying the amount of tokens that change addresses between specific dates by the time elapsed since the last movement transaction.
In general, an increase in the metric indicates that a significant amount of tokens that have been inactive for a long time are becoming active again, changing hands, and there is a sudden and strong change in the behavior of long-term investors towards the coins. On the other hand, when there is a decrease in the Consumed Age metric, coins that have been held for a long time continue to remain in wallet addresses without being traded.
This metric can be used to track the bottom levels of assets. Long-term holders are generally not inclined to move coins that they have not moved for a long time quickly. This situation may indicate that major changes are taking place in market conditions.
According to the data obtained from Santiment, SHIB’s Consumed Age reached 200.78 trillion on October 5th, which meant reaching the highest daily value in the last month. The price of the altcoin was 0.0000071 dollars on that date, and there has been a slight increase in the price since then. As of the time of writing, SHIB was trading at 0.000007252 dollars.
Shiba Coin Future
Another metric indicating that SHIB reached the bottom of its price on October 5th is the Network Profit/Loss (NPL) metric. The feature offered by this metric to investors can be explained as tracking the average profit or loss of coins that change addresses on a daily basis in the chain.
As a result, when the NPL of a crypto asset experiences a decrease, this indicates a short-term abandonment of individuals defined as weak hands (people ready to sell in panic) and a smart re-entry of money. As a result, the metric may indicate that a new group of investors is starting to accumulate the coin, and a price increase may occur in the following period.
This situation also happened in SHIB. According to the data obtained from Santiment, there was a decrease in SHIB’s NPL. NPL dropped to -1.2 million, and as a result, the price of SHIB started to rise in a short period of time.
