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Despite concerns about an overheated market, Shiba Inu’s (SHIB) price continues to hit a higher value and has increased by 32.50% in the last seven days. On Monday, September 23, SHIB’s price was $0.000014.
Today, the meme coin’s value is changing hands at $0.000019. Here’s what is fueling the rally and why SHIB may have significant upside potential despite increasing volatility.
Shiba Inu Market Sentiment Sees All-Round Improvement
Data from Santiment shows that SHIB’s one-day circulation hit a 10-week high of 5.77 trillion on Thursday, September 26. From an on-chain perspective, circulation shows the number of unique tokens transacted on a given day.
When the metric decreases, there is less buying and selling. However, in Shiba Inu’s situation, the spike is a sign of growing market interest. The rise could be linked to SHIB’s rising price and Fear Of Missing Out (FOMO) on further upside.
Interestingly, this surge coincided with a massive rise in Shiba Inu whale transactions. From BeInCrypto’s observation, this rise also appears to be pivotal in the recent upswing. As shown in the chart below, there were 75 transactions worth over $100,000 yesterday.
Similarly, SHIB transactions worth $1 million and above also saw a significant increase, with over 10 such transactions on the same day. The last time this level of whale activity was observed was in August, and this surge could signal bullish momentum for SHIB’s price in the near term.
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Amid these developments, on-chain data also reveals a sharp rise in SHIB’s social dominance, which gauges market sentiment toward a cryptocurrency.
High social dominance reflects a surge in overall online conversations related to a cryptocurrency, often seen as a bullish signal preceding a price increase. Low social dominance, however, tends to be bearish, signaling reduced demand as conversations wane.
For SHIB, the current surge in social dominance indicates the former, though its extreme level suggests that FOMO has taken hold. While FOMO can sometimes lead to price corrections, in Shiba Inu’s case, this may not be the outcome, as the next segment explains.
SHIB Price Prediction: The Rise to Another High Begins
Based on the daily chart, SHIB has broken above the descending triangle formed since May 31. This breakout is a breath of fresh air for the meme coin, which has been consolidating and correcting for a few months.
Beyond that, SHIB’s price is $0.000019, and in a similar position as the wick that led SHIB to hit $0.000035 in the first week in March. Furthermore, the Bull Bear Power (BBP), which measures the strength of buyers compared to sellers, is rising.
When the BBP rises, bulls (buyers) are in control. Conversely, a falling or negative BBP means bears are dominant. According to the image below, the indicator also recorded a similar movement during the increase in the first quarter.
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A look at the Money Flow Index (MFI), which measures capital injected into a cryptocurrency, also supports the bullish outlook. In this instance, SHIB’s price could jump by 90% within the next few weeks and hit $0.000035.
However, a drop in the MFI reading, which would translate to reduced buying pressure, might invalidate the prediction. The meme coin might also experience a bearish reversal if profit-taking occurs. In that scenario, SHIB’s price might pull back to $0.000015.