The Shiba Inu community was in celebratory mode on June 21 after the dog-themed memecoin pumped back above the $0.00000965 price point. Most of the hype was because it managed to drop a zero, a move historically regarded as a major victory for the community.

SHIB not only managed to climb to new price levels but also climbed up the crypto rankings by market cap to secure the #14 spot. The strong uptrend was marked by a significant increase in 24-hour trading volume of over 200%.

Can SHIB keep the lead?

Shiba Inu traded at $0.0000119 on June 21 after rallying at 45%. The strong uptrend had pushed the price back towards the May support levels. This coincided with an RSI build-up to the 50% level, resulting in a significant increase in friction.

The same level that acted as support turned into resistance, resulting in a significant pushback in the press.

Source: TradingView, SHIB/USD

SHIB’s bulls launched their attack at a time when the bearish trend was showing a significant loss of momentum. This was emphasized by the decline in the -DI since June 13. The rise in the +DI was postponed to June 20. Shiba Inu had already registered a significant downtrend after it bounced back from the support-turned-resistance line.

It also sank below the $0.00001 price level and had fallen to $0.0000095 at the time of writing. In addition, it also dropped ranks in the crypto market from #14 to #16, the largest by market cap.

SHIB’s price increase on June 21 (Tuesday) coincided with an increase in the number of daily active addresses by nearly 1,000 addresses. While this points to increased demand, on-chain stats paint a different picture.

The supply on exchanges shows an increase from June 14 to June 21. Meanwhile, the supply of top addresses shows a continuous downward trend during the same time.

Source: Santiment

This confirms that there was not enough volume to sustain a continuous uptrend for at least a few days. However, the MVRV ratio improved from -27.3% on June 13 to 3.83% on June 21, meaning most of the addresses that bought the recent dip are making a profit.

Shiba Inu’s balance delivery distribution of addresses shows a consistent increase in balances. Addresses with between 100,000 and 10 million coins have steadily increased over the past 30 days.

Source: Santiment

The last time Shiba Inu crossed the $0.00001 price level was in 2021 and was supported by strong buying pressure. This time volume was limited by prevailing market conditions which forced investors to exercise caution.

This post SHIB Adds $1.4 Billion To Its Market Cap, But Can It Reclaim Its Supply Zone In The Short-Term?

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