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Shiba Inu prices have fallen 11% in the past week, reflecting a broader market decline. Unlike other Tokens, this decline did not cause a mass sell-off among SHIB holders.
With optimism holding steady, this Cryptocurrency could prepare for a possible recovery or consolidation in the short term.
Shiba Inu Investors Still Believe in Meme Coin
Historically, when Holder SHIB finds it difficult to resist selling, prices drop sharply—usually less than the recent 11% drop. However, according to IntoTheBlock, SHIB’s Coin Holding Period has increased since December 8.
As the name suggests, holding period measures the length of time a Cryptocurrency is held without being sold or traded. When it increases, it means that holders are not transferring Tokens between wallets or selling, which is an optimistic signal.
On the other hand, when the holding period decreases, this indicates a lack of certainty about the short-term potential. In this case, holders liquidate some assets, putting downward pressure on prices.
Therefore, the notable increase in the case of Shiba Inu is an optimistic signal for this Token. If sustained, this could fuel its price recovery.
Furthermore, the difference between Price and Daily Active Address (DAA) provides an attractive signal about SHIB’s resilience. This measurement evaluates user participation on the blockchain and its relationship to price trends, revealing important information.
A positive price-DAA differential signals increased network activity, often paving the way for a price increase. Conversely, a negative divergence indicates reduced participation, which often signals bearish momentum.
Data from Santiment, as shown above, shows that SHIB’s price-DAA differential has increased to 33.65%. If this trend sustains, SHIB’s price could surpass $0.000027 in the coming days.
SHIB Price Prediction: Is Recovery Coming?
On the daily chart, the Accumulation/Distribution (A/D) index has increased. The A/D indicator combines volume and price to gauge whether a Cryptocurrency is being accumulated or sold.
When the index falls, it means higher selling pressure accumulates. Conversely, when A/D increases, it shows that buying pressure is increasing, which is true in the case of SHIB. However, optimists may need to defend the support at $0.000024 to confirm this thesis.
If that happens, SHIB’s price could rise up to $0.000034. However, if the pessimists break the support, this may not happen, and the meme coin could drop to $0.000019.
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