Shiba Inu Price Poised To Rally Amid 3-Year Low Exchange Deposits

Shiba Inu price shows potential for a rally as key on-chain metrics like the NVT ratio and reduced exchange deposits suggest bullish investor sentiment.
By Evans Karanja
Is Shiba Inu Price Set for a Massive Rally After Bouncing Back From $0.0000185

Highlights

  • Shiba Inu price prepares to go on a bull run as on-chain metrics have turned bullish.
  • NVT ratio surged back to monthly highs, but investor sentiment is bullish on SHIB.
  • Coinglass Liquidation Map shows there are way more SHIB longs than shorts.

Shiba Inu price is trending inside a range after failing to sustain above the range in the recent market-wide rally. Despite the consolidation, the market sentiment around Shiba Inu is bullish as traders anticipate it may surge higher. An analysis of on-chain metrics shows the price of SHIB may be up for a 40% rally soon. In the meantime, the Shiba Inu coin price increased by by a fraction in the last 24 hours, trading at 0.00001419.

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On-Chain Metrics Hint Shiba Inu price Rally Inbound

Several on-chain metrics from Santiment confirm that Shiba Inu price is due for a rally soon. The Shiba Inu Network Value to Transaction (NVT) ratio surged back to monthly highs. Still, investor sentiment is bullish on SHIB, which means they are pricing the meme coin at a premium, possibly due to speculative interest or future growth expectations.

Shiba Inu Network Value to Transaction

This assessment is evident in the network realized profit/loss metric, which hit a 4-month low during Shiba Inu price consolidation. The drop in realized profit shows fewer investors are selling their assets at a profit, possibly due to a lack of significant price movements as the price has stagnated. 

network realized profit/loss

It further indicates that the market is indecisive as investors might be holding onto their assets, waiting for clearer signals before making any moves.

Consequently, SHIB deposits to exchanges have reduced over the last three days, hitting the lowest in three years, investors are not moving their assets to exchanges to sell since they are possibly anticipating future price increases.  

SHIB deposits to exchanges

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Futures Traders are Bullish on SHIB Price

According to the Coinglass 30-day Liquidation Map, there are way more longs than shorts. The imbalance shows bullish sentiment is dominating the market because traders anticipate further upside potential for Shiba Inu price.

30-day Liquidation Map

Additionally, the Coinglass Crypto Derivatives Visual Screener (CDVS), which shows the relationship between the changes in open interest (OI) and price, indicates that traders are opening long positions on SHIB as both the OI and price increased over the last 24 hours. This suggests that new money is entering the market, supporting a potential upward trend from the current consolidation.

The recent price action indicates that SHIB is consolidating within a defined range between defined supply and demand zones, suggesting a lack of strong directional momentum.

SHIB price may find resistance around the supply zone level $0.00001528. This area also aligns closely with the 50-day EMA, providing a dual layer of resistance. Shiba Inu price prediction shows if it breaks above this barrier, the meme coin can surge to $0.00001760, a 27% surge from the current price.

Shiba Inu Price Chart

If the price of SHIB breaks and maintains below $0.00001300, it may show market weakness, invalidating the current bullish thesis. Shiba Inu price may find further support lower around $0.00001080.

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Frequently Asked Questions (FAQs)

1. Why is Shiba Inu (SHIB) price expected to rise?

SHIB price might rise due to positive market sentiment, increased Network Value to Transaction (NVT) ratio, and fewer investors selling at a profit. Reduced SHIB deposits to exchanges indicate that investors are holding onto their assets, anticipating future price increases.

2. What does the NVT ratio indicate for Shiba Inu?

The Network Value to Transaction (NVT) ratio for Shiba Inu has surged to monthly highs, suggesting that investors are valuing SHIB at a premium, likely due to speculative interest and expectations of future growth.

3. What are on-chain metrics saying about SHIB future price action?

On-chain metrics, such as reduced exchange deposits and low realized profit/loss, hint that investors are holding onto SHIB, indicating a potential price rally.
Evans Karanja
Evans Karanja is a crypto analyst and journalist with a deep focus on blockchain technology, cryptocurrency, and the video gaming industry. His extensive experience includes collaborating with various startups to deliver insightful and high-quality analyses that resonate with their target audiences. As an avid crypto trader and investor, Evans is passionate about the transformative potential of blockchain across diverse sectors. Outside of his professional pursuits, he enjoys playing video games and exploring scenic waterfalls.
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