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SHIB Struggles Amid Contradicting Behavior From Investors

Published 31/05/2023, 11:20
SHIB Struggles Amid Contradicting Behavior From Investors
SHIB/USD
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  • On-chain data shows contradicting behavior between existing SHIB investors.
  • Glassnode, shows a recent surge in new SHIB addresses.
  • The price of SHIB has remained stagnant over the same period.

On-chain data shows contradicting behavior between existing SHIB investors and newcomers. Data from the crypto analytical platform, Glassnode, shows a recent surge in new SHIB addresses. However, the price of the leading meme coin has remained stagnant over the same period.

A renowned market watcher, Ali Martinez, observed the surge, particularly the spike on May 26, when 2,538 new SHIB addresses joined the network in a single day. That spike marked the highest increase in the number of SHIB addresses in three months.

Despite the recent rise in network activity, SHIB’s price has remained relatively stagnant. The meme coin’s price has continued in the narrow horizontal channel it traded in the past three weeks. Throughout this period, SHIB’s price moved between an upper boundary of $0.00000917 and a lower support of $0.00000829.

From an alternative analytical platform, Santiment, there is evidence of a surge in the SHIB active deposits. Usually, a rise in active deposits could suggest that investors are potentially selling their assets. With the current situation, the exchange balance for SHIB has not changed much. Overall, this indicates the new entrants into the network are exhibiting bullish tendencies.

SHIB active deposits on Santiment

Available data suggest potentially bullish investors are entering the Shiba Inu network recently. However, the overall outcome shows a matching resistance from existing investors with a bearish outlook. The lack of recovery by SHIB suggests a lack of participation by the over 1.2 million existing SHIB addresses.

Crypto users may attribute the lack of participation to the overall market trend. The crypto market has consolidated since the initial rally of Q1 2023 faded. Some analysts believe it is a normal behavior for the crypto market as it prepares for increased volatility ahead of the next Bitcoin halving.

The post SHIB Struggles Amid Contradicting Behavior From Investors appeared first on Coin Edition.

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