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Shiba Inu holders have shown remarkable resilience amid an 11% price drop over the past week, defying broader market trends that often lead to panic sell-offs. Unlike other cryptocurrencies, the SHIB community continues to maintain strong bullish sentiment, signaling potential for a price rebound or consolidation in the near term.
This trend is supported by various metrics, including increasing holding times and positive price-DAA divergence, indicating a growing commitment among investors despite current challenges.
Historically, large-scale sell-offs among Shiba Inu holders have triggered sharp price declines, often worse than the recent 11% drop. However, data from blockchain analytics firm IntoTheBlock reveals a bullish divergence: SHIB’s Coins Holding Time has been steadily increasing since December 8.
Holding time reflects investor confidence. When it rises, it shows that holders are willing to wait for potential price recovery, says Lucas Campbell, a crypto analyst at IntoTheBlock.
This metric highlights that Shiba Inu holders are not moving or selling their tokens, a key signal of growing conviction. Conversely, a decline in holding time typically indicates reduced confidence and subsequent sell-offs.
If the upward trend in holding time continues, it could act as a foundation for Shiba Inu’s price recovery, with bullish sentiment providing much-needed support.
The price-Daily Active Addresses (DAA) divergence is another key indicator pointing toward optimism for SHIB. This metric evaluates the correlation between price trends and user participation on the blockchain.
Recent data from Santiment shows a significant surge in SHIB’s price-DAA divergence, reaching 33.65%. A positive divergence like this often signals increased network activity, a precursor to potential price rallies.
Rising user engagement on a blockchain typically indicates renewed interest and trading activity, which can drive prices higher, explains Michael van de Poppe, a crypto market strategist.
If this trend persists, SHIB could surpass the $0.000027 price level in the coming days, marking a crucial milestone for its recovery.
Another encouraging sign for Shiba Inu holders is the behavior of the Accumulation/Distribution (A/D) indicator. This metric combines price and volume data to determine whether a cryptocurrency is being accumulated or sold off.
Recent readings show that SHIB’s A/D indicator has been rising, indicating increasing buying pressure. This suggests that more investors are accumulating SHIB, despite the recent dip.
If bulls can defend the critical support level at $0.000024, it could pave the way for SHIB to rally toward $0.000034, notes Amelia Thomas, a blockchain strategist. However, failure to hold this level may result in a further drop to $0.000019.
The unwavering commitment of Shiba Inu holders showcases the strength of the SHIB community. Unlike many cryptocurrencies that experience panic selling during downturns, SHIB investors have demonstrated resilience, holding on to their tokens even as prices waver.
This sentiment is echoed by crypto influencer ShibaQueen, who states, The SHIB army is built on trust and long-term vision. While price dips are inevitable, our strength lies in our ability to hold and look beyond the short-term fluctuations.
The combination of increasing holding time, positive price-DAA divergence, and rising A/D indicator readings paints a bullish picture for SHIB’s near-term performance. However, much depends on the ability of Shiba Inu holders to maintain their resolve and the broader market’s behavior.
If bulls successfully defend the $0.000024 support, SHIB’s price could aim for $0.000034, a significant rebound from current levels. Conversely, a breach of this support could lead to a downturn, testing the $0.000019 mark.
As the crypto market navigates turbulent waters, Shiba Inu holders stand out for their resilience and optimism. Key metrics suggest that SHIB is positioned for a potential rebound, provided the current bullish signals are sustained.
The coming days will be crucial in determining whether SHIB can capitalize on its community’s commitment and regain lost ground. Regardless of the outcome, the dedication of Shiba Inu holders serves as a testament to the strength of the meme coin movement in the crypto space. Get more from The Bit Gazette
