32% Rally Powered by Short-Term Buyers, But Will It Hold?”

• SHIB’s recent rally, driven by short-term holders, faces risks of volatility due to these holders’ propensity to react swiftly to market changes.
• Long-term holders’ actions, either selling or accumulating, will significantly influence SHIB’s future price trajectory, potentially stabilizing or boosting its market value.

According to recent data, Shiba Inu (SHIB) has experienced a strong price rally, currently trading at $0.000017, representing a 32% surge over the past month. This growth has largely been driven by increased coin holdings and reduced selling activity among short-term holders (STHs).

These STHs, who typically hold their assets for less than a month, have increased their SHIB balance by 20%, indicating short-term bullish sentiment. However, given the historical tendency of STHs to react quickly to market shifts, there are concerns about the sustainability of this price momentum.

Reiterating a previous CNF update, Shiba Inu (SHIB) marketing lead Lucie has expressed strong confidence in the meme coin, likening it to a “friend who bounces back no matter what.” As of today, according to CoinMarketCap data, SHIB is priced at $0.00001716 with a decrease of 1.75% in the past day and a surge of 3.23% in the past week.

Additionally, Shiba Inu’s positive daily active address (DAA) divergence, currently at 15.97%, reinforces the bullish outlook. This metric compares the asset’s price movement with changes in its number of daily active addresses, indicating that demand for SHIB has surged in recent weeks. Such positive DAA divergence often signals growing interest and potential for continued price appreciation.

Risk from Short-Term Holders

However, the reliance on STHs for the recent rally introduces significant risk. STHs are known for their sensitivity to market fluctuations, meaning that a sudden downturn could trigger a wave of sell-offs, leading to a sharp price drop. If these investors begin selling, SHIB could potentially retrace to support levels around $0.000012, and if that level fails, it could dip further to $0.000010.

Long-Term Holders’ Impact on SHIB’s Future

Conversely, long-term holders (LTHs) have reduced their SHIB balance by 0.35% in the same period, indicating profit-taking behavior. If LTHs shift their sentiment and begin accumulating more SHIB, the coin’s value could potentially climb toward $0.000028. The dynamics between STHs and LTHs will likely play a crucial role in determining SHIB’s future price trajectory.