- SHIB’s on-chain volume in profit outpaced its losses.
- The price may hit $0.00001 if accumulation continues to trend higher.
Shiba Inu [SHIB] may have let its holders down for a long time. But the token’s performance of late is a sign that there could be light at the end of the tunnel. One reason for this take is SHIB’s price action in the last 30 days.
According to CoinMarketCap, SHIB has hit $0.000008, while gaining 12.87% of its value in the last 30 days. The price increase means holders who have had to deal with losses can now heave a sigh of relief that the plunge in their portfolio has reduced.
More gains, fewer losses
However, that was not the only bone of contention that has brought more confidence into the Shiba Inu community. To assess what else was going on with the project, AMBCrypto capitalized on on-chain data provided by Santiment.
Based on the analysis of the 30-day daily on-chain transaction volume, those in profit were 480.59 billion. On the opposite end, the on-chain transaction volume in loss was 254.75 billion.
By comparing these two metrics, we concluded it was not just holders that were experiencing respite.
Source: Santiment
Instead, most of SHIB’s short-term holders who are in the habit of moving tokens also gained despite the seven-day slight decline. Irrespective of the gains seen recently, it is necessary to check if more is on the way or if a correction period is next.
To do this, the technical perspective would also come in handy. From the SHIB/USD 4-hour chart, the Accumulation/Distribution (A/D) line was increasing. The A/D is used to indicate the trend of a cryptocurrency based on the volume.
Odds of a move to $0.00001 remain high
As a cumulative value of where the price closed and opened, the indicator tells if traders are buying or selling their tokens. At press time, SHIB’s A/D had jumped to 116.90 trillion. This indicated that there was far more buying than selling.
If the trend continues this way, it is possible for SHIB to reduce one of its zero and climb to $0.00001. The Relative Strength Index (RSI), at 61.97, also confirmed the large buying momentum SHIB had.
Source: TradingView
Should the RSI reading increase, then short positions (those opening positions predicting a price decrease) may be liquidated. Further assessment of on-chain data showed that Shiba Inu’s volume was up to 163.77 million.
The surge in volume and 24-hour declining price action means SHIB’s upturned might stall. Another metric to consider is circulation. In the last 30 days, the circulation has increased to 21.66 trillion.
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The hike in the metric is confirmation of the increase in the usage of Shiba Inu tokens. Similarly, the circulation amount is a sign that selling pressure may increase.
Source: Santiment
To halt the sell-offs and have a chance at $0.00001, the price action needs to rise alongside the volume. This is bound to happen if the accumulation trend remains in the upward direction.
