Evaluating Shiba Inu’s Chances Following Recent SHIB Setbacks
Based on the average coin age metric, long-term holders decided to begin distribution in August.
Shiba Inu has maintained its bullish structure despite a 28.6% drop from its local highs.
- The imbalance in the daily chart has been filled, but it remains unclear whether this will lead to an improvement.
Shiba Inu [SHIB], one of the large-cap meme coins, excited bulls in the second half of September. From the 18th of the month, SHIB grew by 67.36% over nine days but failed to break the bearish order block at $0.000021.
Source: SHIB/USDT on TradingView
The next correction forced SHIB below the support level of $0.0000175. A recent report indicated that such a move could be an early sign of bearish dominance. Should traders prepare for further losses, or is this a temporary pullback before the next upward momentum?
The sentiment around Shiba Inu has done a complete 180.
Source: Santiment
The weighted sentiment in the market was significantly bullish by the end of September, reaching scores not seen in the last three months and easily surpassing the positive sentiment of the mid-August rally.
Daily active addresses of Shiba Inu also formed a new peak. The last time this metric increased until September 29 was in May. Both metrics indicated a bullish belief that has fallen in the past four days.
The age consumption metric also saw a notable increase over the past two days. This indicates a movement between addresses and is generally a sign of selling pressure.
Insights on Long-term and Short-term Holders
Source: Santiment
The 30-day MVRV remained positive, indicating that on average, short-term SHIB holders are still in profit. However, the 180-day MVRV fell below zero after briefly resurfacing during the rally.
Given the downtrend that the memecoin has been in since May, the inclination of long-term holders to exit during pullbacks was evident.
The network growth metric rose alongside the price, showing that more participants have flocked to the market. The average coin age has also been trending downward since the last week of August.
As a result, long-term holders decided to begin distribution at that time. The final rally to $0.0000217 served as a local top. Shiba Inu likely needs another accumulation phase before it can replicate the gains seen in September.
