Shiba Inu's on-chain data saw a substantial surge in the number of buyers. However, an increase in bids is not a guarantee of price growth but rather a sign of a momentary buying power, and it should not be considered a longer-term signal of strength.
Based on recent price movements, Shiba Inu is currently trading at $0.00001606 on the daily chart. This indicates a slight increase. Despite the noticeable increase in buyers, SHIB has struggled to overcome significant resistance levels.
SHIB/USDT Chart by TradingView
The price has remained below the 200 EMA and the 100 EMA due to the 50 EMA acting as a barrier. The increase in buying activity could indicate a return of interest in SHIB, perhaps as a consequence of speculation on the market or short-term trading strategies. Shiba Inu, however, needs to keep rising above these significant EMA levels in order for the price to increase steadily.
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While there have been some fluctuations in the trading volume, there has not been a steady upward trend that would indicate a strong bullish reversal. Along with technical indicators, broader market conditions will play a significant role in SHIB's price movement. The overall mood of the cryptocurrency market, which is impacted by regulatory changes and macroeconomic variables, may have an effect on SHIB's performance.
SHIB and other altcoins might benefit, for example, from good news regarding institutional interest in cryptocurrencies or regulatory clarity. It is also important to remember that even though the number of purchases has increased, this does not always indicate ongoing demand. But you should exercise caution and use other factors in addition to this metric when making long-term investment decisions. While movement on the chain is a useful source of information, it is not the only factor in determining the asset's overall state.
