Shiba Inu (SHIB), the second-largest memecoin by market cap, has seen a significant increase in two important on-chain metrics: active addresses and social media dominance.
The number of active addresses is a commonly used indicator to gauge the level of interest and activity in a memecoin, as well as demand from investors.
Shiba Inu's On-Chain Metrics Are Showing Positive Signals
According to data from Santiment, the number of active addresses for SHIB has skyrocketed, reaching its highest level since June. Specifically, this index in a 24-hour period has increased by nearly 75% compared to a month earlier.
The social dominance index, which measures the popularity and frequency of mentions of cryptocurrencies on social platforms like X, also hit a nearly six-month high of 1.81%, according to data from Santiment. The surge in mentions of the Shiba Inu on social media was largely due to the assetâs price surging, with an intraday increase of 21% earlier in the week.
The supply of SHIB on exchanges has dropped nearly 12% since the beginning of the year, down to 73.08 trillion as of Friday. The drop in supply on exchanges means selling pressure is also easing, as fewer tokens are available in exchange wallets.
Shiba Inu is on track for a gain of more than 12%
SHIB has been in a multi-month downtrend since peaking at $0.00004567 in March 2024. However, this Thursday, SHIB rebounded strongly with a gain of more than 20%. The memecoin is likely to continue its bullish momentum and target a further 12.8% increase to $0.00002415, the lower boundary of the fair value gap (FVG) between $0.00002494 and $0.00002415.
In case of a correction in SHIB, support could lie in the FVG zone from $0.00001576 to $0.00001875.
The MACD (Moving Average Convergence Divergence) indicator is currently producing green histogram bars, with increasing size, indicating increasing positive momentum for the price of SHIB. This further strengthens the bullish scenario for Shiba Inu.
However, if the daily candle closes within the FVG zone between $0.00001576 and $0.00001875, this bullish thesis could be invalidated, pushing SHIB down to collect liquidity at $0.00001388.
