By Franklin Smith
Without known triggers, the meme coin Shiba Inu saw its price surging more than 30% during the August 14 trading session. The alternative token surged to $0.00017, touching the highest mark since May 10. Moreover, the trading volume gained more than 700%, the highest SHIB has seen since April 12.
According to Santiment, the Shiba Inu platform witnessed a substantial surge in whale transfers beyond $100K during the August 12 intraday trading session. The alt saw more than 400 whale transfers. That made a record as the highest transaction number worth over $100K the meme token has registered within the last four months.
Set, Ready, Go?
The daily chart showed August 14 upside could mean a bull run welcome for the canine-themed token. However, can that be the case? While the alt’s crucial indicators, Money Flow Index and Relative Strength Index, stayed at overbought levels, the MACD’s (moving average convergence divergence) displayed no impending bull run. While publishing this post, the MACD and Trendline remained far apart, without a visible upside intersection.
While writing these lines, the meme coin changed hands at $0.00001558 (Coinmarketcap data). That showed a 9% decline from August 14 $0.000017 intraday high. Also, the 1D MVRV displayed a -7.498% despite the substantial price surge. That suggested that not many traders witnessed profits amidst the rally. However, the alt boasts a positive +28.32 MVRV on a 30-day timeframe.
The MDIA (Mean Dollar Invested Age) is another notable on-chain index before buying this alternative token. Santiment describes it as the (average) age of assets on a blockchain versus the buy price.
A rising MDIA means that coins are dormant in addresses. Prolonged upside MDIA sees a warning as it suggests stagnancy on the asset’s network, making it challenging for continued price growth. Assessing Shiba Inu’s MDIA showed the meme coin has traversed a long upside within the last six months.
Thus, investors planning to capitalize on the latest rise should adopt caution, as SHIB network’s stagnancy shows prices will still plunge. Also, the alt will respond to broad market cues. Crypto bulls seem exhausted following the latest rally, welcoming downward possibilities.