According to recent data, Shiba Inu (SHIB) has seen a strong increase in price and is currently trading at $0.000017, up 32% from the last month. This growth is mainly due to an increase in token holdings and a decrease in selling activity by short-term holders (STH).

These STHs, which typically hold assets for less than a month, have seen their SHIB balances increase by 20%, indicating short-term bullish sentiment. However, given STHs’ historical tendency to react quickly to market changes, there are concerns about whether this price momentum can be sustained.

Reiterating a previous CNF update, Shiba Inu (SHIB) marketing executive Lucie expressed strong confidence in the meme coin, likening it to a “friend who will bounce back no matter what.” As of today, SHIB is priced at $0.00001716, down 1.75% over the past day and up 3.23% over the past week, according to CoinMarketCap.

Additionally, Shiba Inu’s Daily Active Addresses (DAA) positive divergence currently stands at 15.97%, reinforcing the bullish outlook. This indicator, which compares an asset’s price action with changes in its number of daily active addresses, suggests that demand for SHIB has surged in recent weeks. This positive DAA divergence typically indicates growing interest and the potential for prices to continue to rise.

Risks for Short-Term Holders

However, the recent rally’s reliance on STH carries a significant risk. STH is known for its sensitivity to market volatility, meaning a sudden downturn could trigger a wave of selling that could lead to a sharp drop in price. If these investors begin selling, SHIB could retrace to support around $0.000012, and if that level fails, it could fall further to $0.000010.

The impact of long-term holders on SHIB's future

Conversely, long-term holders (LTH) reduced their SHIB balance by 0.35% during the same period, indicating profit-taking behavior. If LTH shifts sentiment and starts accumulating more SHIB, the token’s value could climb to $0.000028. The dynamics between STH and LTH could play a key role in determining SHIB’s future price action.