Despite an 11% drop, Shiba Inu (SHIB) has rebounded with bullish momentum as traders aim to recover recent losses.
Amid the broader crypto market sell-off earlier this week, Shiba Inu price SHIB $0.000028 24h volatility: 4.1% Market cap: $16.59 B Vol. 24h: $2.01 B came under strong selling pressure dropping 11% and slipping under $0.000025. However, the bulls have staged a comeback surging 12% from yesterday’s bottom thereby leading to 7.65% gains in the last 24 hours. This shows that bulls are aiming to recover the 11% SHIB price drop on the weekly chart.
Also, the positive thing is the long-term SHIB holders have continued to hold firmly despite this massive price volatility. According to IntoTheBlock, SHIB’s coin holding time has been rising since December 8.
Courtesy: IntoTheBlock
Coin holding time refers to the duration a cryptocurrency remains in a wallet without being sold or transferred. An increase in holding time indicates that holders are choosing to keep their tokens rather than moving or selling them, which is considered a bullish sign. However, a drop in the holding time suggests a lack of conviction in the short-term potential.
Additionally, the Daily Active Addresses (DAA) divergence for the Shiba Inu price provides a strong signal for SHIB’s potential rebound. This metric basically analyzes the user activity on the blockchain along with its correlation with price movements while offering valuable insights.
A positive price-DAA divergence indicates increased network activity, often leading to price gains. In contrast, a negative divergence suggests reduced engagement, typically pointing to bearish momentum.
Courtesy: Santiment
As per the chart provided by Santiment, the SHIB’s price-DAA divergence has risen to 33.65%. If this trend continues, SHIB price may see strong bullish momentum in the near future.
As reported, Shiba Inu has bounced back from its weekly bottom of under $0.000025 with bulls pushing SHIB price over 7.65% gains at press time. Also, the SHIB open interest has surged by 5.3% surging past $102 million showing that traders are bullish about the future price action.
On the daily chart, the Accumulation/Distribution (A/D) indicator has risen, signaling increased buying pressure. The A/D indicator, which combines volume and price to assess whether a cryptocurrency is being accumulated or sold, shows that SHIB is experiencing higher buying activity.
Courtesy: TradingView
If the A/D continues to rise, it suggests bullish momentum. However, for this trend to hold, bulls must defend the support level at $0.000024. If successful, SHIB’s price could climb to $0.000034. On the other hand, if bears break this support, SHIB could fall to $0.000019.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
