Does the ‘spike of the year’ indicate that Shiba Inu is gearing up for a rally?

Lavina Daryanani
Source: Newsroom Post

Over the past few hours, the market has gradually started to ripen up. Red numbers on the charts have begun becoming green and bearish signs across the board have also started flipping to bullish. Shiba Inu [SHIB] was one of the few handpicked prominent tokens whose metrics had dramatically improved over the past 24-hours.

Looking beyond the price

Santiment’s explore screener pointed out an interesting trend with respect to Shiba Inu’s Daily Active Addresses [DAA]. Per the same, the metric was up by 156% over the past day. No other prominent large-cap coin could make it to the list.

Source: Santiment

Shiba Inu’s spike of the year

Closer introspection of the DAA chart brought to light that this metric’s spike was way above average. At the time of press, the same reflected a value of 39.2k.

Also, as can be noted from the snapshot affixed below, the current levels are 2022’s highest and were last seen back during the token’s rally phase in 2021’s October-November period.

Source: Santiment

Usually, a rise in this metric is considered to be a healthy sign, for it is indicative of trader/investor participation in the market. The same, however, doesn’t always guarantee a rise in the price.

Dogecoin, for instance, witnessed a monumental spike on this front last week, but the asset’s underlying price chose to remain inert.

Source: Santiment

What are participants upto?

Alongside the DAA anomaly, it can also be noted that Shiba Inu’s trading volume ballooned up by 247% over the past day. Market participants, however, remain to be divided at this stage.

Per ITB’s order book stats, the buy trades were greater than the sell trades on the 10 minute, 30 minutes, 1 hour, 3 hours, and 12-hour windows. Sell trades, on the other hand, managed to overshadow them on the 1 minute and 6-hour windows. The precise numbers can be noted below.

Source: ITB

So, if the buying bias ends up taking an even more concrete shape going forward, we might see Shiba Inu’s price react positively. However, if bears manage to assert dominance, then Shiba Inu’s price would continue staggering.

At the time of press, SHIB was trading at $0.00002261, up by 2.63% in the day’s trade.