Shiba Inu (SHIB) Spikes 15% Weekly

TL;DR

• SHIB still underperforms compared to other leading altcoins, with over 50% of its holders remaining at an unrealized loss.
• Some analysts foresee a bullish breakout, while on-chain data indicate reduced exchange inflows, which is typically a sign of reduced immediate selling pressure. However, SHIB’s RSI above 70 suggests the asset may be overbought and due for a short-term correction.

The Gains Are Not Good Enough?

Shiba Inu (SHIB) has experienced a price increase of around 15% over the last week, currently trading at approximately $0.00001445 (per CoinGecko’s data). The rise appears solid, but it is not as substantial as the resurgence of other well-known altcoins, such as Stellar (XLM), Ripple (XRP), and Hedera (HBAR), among others.

Moreover, most Shiba Inu holders continue to sit on unrealized losses. According to IntoTheBlock, 44% of those invested in the asset are in the green, 54% are in the red, whereas 2% are at break-even.

This could be explained by the fact that many holders of the meme coin jumped on the bandwagon years ago when the price was flying high. Data shows that almost 80% of SHIB’s investors have joined the ecosystem more than 12 months ago, while only 2% have done so in the last 30 days.

Recall that the self-proclaimed Dogecoin-killer reached its historic peak in November 2021 when it tapped roughly $0.00008616. SHIB’s current valuation represents a whopping 83% decline compared to the ATH.

The Rally Is Just Starting?

According to some market observers, SHIB has yet to post significant gains. X user World of Charts claimed the price has broken an “important area,” which could be a precursor of a “nice bullish rally.”

Certain indicators also support the bullish thesis. CryptoQuant’s data shows that SHIB’s exchange netflow has been mostly negative over the last week, hinting that investors have shifted from centralized platforms to self-custody methods. This development reflects on reduced immediate selling pressure. 

Despite the bullish momentum, there are also some warning signs. Shiba Inu’s Relative Strength Index (RSI) has spiked beyond 70, indicating the asset could be overbought and headed for a short-term pullback.

Readings above that level are generally considered bearish, suggesting that the price has surged too quickly over a short period. On the other hand, ratios below 30 are often seen as bullish, signaling a potential buying opportunity.