Amid a double-digit price drop last week, Shiba Inu (SHIB) exerted a significant impact on its market value. Even as the market remains under bearish pressure, a few developments might indicate a possible trend reversal.
SHIB Accumulation Increases
According to data from Lookonchain, a whale bought SHIB amidst the price fall. The biggest owner of SHIB purchased over 1.5 trillion meme coins valued over $10 million from Binance and Coinbase. At the time of writing, the address was holding more than 5 trillion SHIB.
That’s not all. Whalestats data unveiled that SHIB remains the most popular crypto amongst whales. In the past 24 hours, SHIB was the most traded token amongst the top 100 Ethereum whales.
Shortly after the purchase, SHIB’s price recorded an increase of over 2% in the past 24 hours. CoinMarketCap data shows that SHIB was trading at $0.00000673, with a market cap exceeding $3 billion at the time of writing, making it the 18th largest crypto.
Current Scenario for Shiba Inu Investors
While the price rise seems promising, it may not last long. The price increase was accompanied by a drop of over 20% in trading volume, indicating a downtrend. SHIB’s Exponential Moving Average (EMA) Ribbon also indicated bearish market leadership at press time.
However, the Relative Strength Index (RSI) was in the oversold territory, which could increase buying pressure. SHIB’s Money Flow Index (MFI) continued to hover in the oversold zone, following the RSI.
Yet, Shiba Inu’s Chaikin Money Flow recorded an uptick. Therefore, a further bullish trend cannot be ruled out.
Amid this chaos, LUCIE, a Twitter account posting updates related to the Shiba Inu ecosystem, hinted at the mainnet launch of Shibarium. According to the tweet, the Shibarium launch will take place when market conditions improve.
Current State in Shiba Charts
The exchange outflow for SHIB has surged twice, which is generally a bullish signal. Additionally, the exchange reserve also showed a decline, indicating that the memecoin is not under selling pressure.
The network activity of the Shiba Inu ecosystem was high, as inferred from the increased network growth. However, the low MVRV Ratio seemed concerning. SHIB’s 1-day price volatility also decreased, minimizing chances of a bullish trend.
