InvestorCrypto.net - Shiba Inu, the world's second-largest meme coin, has seen a surge in popularity in recent years, with its presence in Europe second only to Bitcoin.
Despite this rise in popularity, there are questions surrounding whether this will translate into an increase in price for the meme coin. Recent data shows that Shiba Inu is the second-most searched crypto in Europe, only behind Bitcoin, which has led to high social volume for the coin.
However, this increased popularity has not had a positive impact on market sentiment, as weighted sentiment has dropped significantly over the past few days.
As sentiment turned bearish, selling pressure on Shiba Inu increased, with the supply inflow of the meme coin rising in the last week. Interestingly, despite the increase in supply on exchanges, whales have not been actively trading the token, as seen from the flat supply held by the top address graph. This has further contributed to the selling pressure on SHIB.
Despite the selling pressure, there are signs pointing towards a potential bull rally for Shiba Inu.
Analysis of Glassnode's data reveals that SHIB's Network Value to Transactions (NVT) ratio has seen a sharp downtick. This indicates that the asset may be undervalued, potentially leading to a northbound price movement.
Already, Shiba Inu's value has surged by more than 5% in the last 24 hours, with the coin trading at $0.00002932 and holding a market capitalization of over $17 billion, making it the 12th largest crypto.
Looking at Shiba Inu's daily chart, indicators such as the Relative Strength Index (RSI) and Money Flow Index (MFI) suggest that the bull rally may continue.
However, the Moving Average Convergence Divergence (MACD) remains in favor of the sellers, indicating a bullish sentiment in the market.
In conclusion, while Shiba Inu's popularity has skyrocketed in recent years, there are mixed signals regarding its price movement.
The increase in social volume and search interest in Europe has not translated into positive market sentiment, leading to increased selling pressure on the coin.
However, indicators like the NVT ratio point towards a potential uptrend in price, with signs of a bull rally already beginning. It will be interesting to see how Shiba Inu continues to perform in the coming days and whether it can sustain its upward momentum in the market.
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