Will SHIB follow suit as Shiba Inu volumes surge?

  • Shiba Inu’s trading volume spiked by 192.84% in 24 hours, reaching $412.06 million.
  • SHIB witnessed an 8.68% price jump, while social volume declined.

In the past 24 hours, Shiba Inu [SHIB] experienced a remarkable surge, both in trading volume and price, leaving investors and enthusiasts speculating on the potential impacts of these developments.

Turning up the volume

The trading volume for SHIB witnessed an impressive spike, growing by an astonishing 192.84% and reaching a total of $412.06 million.

This surge in volume, coupled with an 8.68% increase in price, gave SHIB a positive position at press time.

The influence of Bitcoin’s recent price spike may have contributed to this surge, however, there is a possibility that SHIB could sustain this rally going forward.

Examining SHIB’s price movement revealed some positive signs. The token tested the resistance level of $0.000051 twice in recent weeks.

If sustained momentum supports SHIB, there is potential for the price to break past this resistance, opening up new possibilities for further growth.

Additionally, The On-Balance Volume (OBV) for SHIB grew during this period. The OBV, reflecting the cumulative trading volume, suggests a positive correlation between volume and price movement.

A growing OBV reinforces the bullish sentiment surrounding SHIB. Contrastingly, the Chaikin Money Flow (CMF) witnessed a significant decline, falling from 0.30 to 0.17.

This sharp drop in CMF raises concerns about the sustainability of the positive trend. A lower CMF can indicate weakening buying pressure, prompting a cautious outlook for SHIB’s short-term prospects.

SHIBUSD 2024 02 27 17 18 05.png

Source: Trading View

Analysing social activity

Despite the surge in price, the social volume around SHIB declined.

Given the significant influence of social media on the prices of meme coins, this decrease in social volume could pose challenges for SHIB’s future performance, requiring attention to maintain community engagement.

The Weighted Sentiment around SHIB grew, suggesting that positive comments outperformed negative ones on social media at the time of writing.

SHIBA INU SHIB 17.19.13 27 Feb 2024.png

Source: Santiment

How much are 1,10,100 SHIBs worth today?

The burning of SHIB tokens could also impact SHIB’s price going forward. In the last 24 hours, 5,102,438 SHIB tokens were burned.

Token burning can impact the token positively by reducing the circulating supply, potentially enhancing scarcity and value.

Screenshot 2024 02 27 at 5.20.08 PM.png

Source: X

Next: Polkadot: What traders need to know as DOT surges by 6%

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