Shiba Inu is one of the most talked about coins in the cryptocurrency sphere and beyond. During its heyday, people would almost associate cryptos with Bitcoin or Shiba Inu. Well, those glory days are long gone. After falling from $0.000088 all time highs to the current $0.000028 – a lot has changed.
However, as the broader market begins to stabilize, Shiba Inu has also managed to bottom out and show some hope of recovery. At the beginning of this month, it rose more than 50% in three days and has more or less held its position. Technically, it broke through the 50 and 200 DMA on the same day and through the immediate resistance level the next day. Even the RSI has managed to reflect the increased momentum.
SHIB/USDT | Source: Tradingview
A few on-chain stats have also begun to show optimism for this much-adored puppy. The adjusted price DAA divergence for SHIB, which had given serious sell signals, has finally managed to show some positivity in the charts. At the end, small green bars started to form that could indicate that there is more to come.
Adjusted Price DAA Divergence | Source: Santiment
The N/A ratio was also quite low despite the price recovery. This points to an attractive value proposition for the currency. A good buying opportunity for an investor who likes excitement and has money to lose. As prices remain above a critical support level, it can also be viewed as a low-risk entry with huge upside potential.
N/A ratio | Source: Santiment
However, there are also a few disturbing signs to keep in mind before jumping on the bandwagon. The supply of SHIB coins held by top addresses that are not redeemable has been steadily declining in the past. Conversely, the supply of coins on the exchanges saw a large increase.
Tokens held by top non-exchange addresses vs. tokens held by exchange addresses | Source: Santiment
And besides that, the social dominance of Shiba Inu, which used to be one of its most characteristic traits, has also – for lack of a better word – stagnated. Take a look at the chart below, in its heyday – SHIB was by far one of the most active coins in social engagement and now it has died out to meager levels.
Social dominance | Source: Santiment
In general, one can agree that things are not looking too rosy for Shiba Inu. It may take a while for the coin to regain its lost glory and show some recovery in the charts. However, it seems that an improvement in broader market sentiment could help her situation to a great extent; only time will tell that story.
This post Can the former crowd favorite SHIB regain its former glory?
was published first on https://ambcrypto.com/can-the-once-crowd-favorite-shib-recover-back-to-its-former-glory-days/
