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The power of the Shiba Inu (SHIB) community is once again making waves in the market as the number of active addresses begins to increase. Between March 5th and 7th, the project experienced a decline in active addresses. This decline occurred after previously reaching a peak of around 55,200. So, what can be expected for the price of Shiba Inu going forward?
Shiba Inu’s Recovering Price and Active Addresses
Active addresses represent the number of unique users participating in transactions. This metric helps to understand whether there is high speculation around a token. During the period of increased active addresses, Shiba’s price showed a 213% increase over seven days.
A few minutes later, the metric dropped and Shiba Inu’s price recorded a 6% decrease over a 24-hour period. As of writing this article, the metric has risen to 18,200 and the token value has increased by 11%.
However, it is important to note that the metric is not the sole determinant of price movement. The latest trend suggests that SHIB may have a chance to repeat its previous performance. Even though it showed a 200% increase within seven days, there is a chance for the value to retest the $0.000040 level. As of writing, SHIB is trading at $0.000033.
Pay Attention to the NVT Signal
The NVT signal serves as a leading indicator to examine whether an asset is priced at a premium or at a discount. The metric peaked each time SHIB’s value dropped.
Moreover, the NVT signal was at 125.37 while writing this article, significantly lower than the previous value of 207.19 a few days ago. This reading suggests that Shiba Inu may be close to a short-term bottom, hence increasing the possibility of an uptrend.
Sentiment Continues to Rise
The Weighted Sentiment for Shiba is at 0.335, which is slightly lower than a few days ago. Weighted Sentiment measures the unique social volume to assess whether market participants are inclined to a bullish or bearish trend on a project. Since the metric is not in the negative zone, it implies that there are more positive discussions about Shiba Inu than negative ones.
In terms of the one-day circulation figure, Santiment‘s on-chain data showed a decrease, with circulation dropping to 3.01 trillion as of writing. This decrease indicates that fewer tokens have been traded since March 5th.
