Journalist
Posted:
Key Takeaways
Are the Shibarium metrics and SHIB burns signaling price growth?
No, the Shibarium activity and user growth, alongside the SHIB burns, were too little to drive an appreciable price rally.
What do other indicators say?
The holder accumulation ratio went through the roof in favor of the bulls in recent weeks, but it was contrasted by the bearish price action.
The Shibarium L2 blockchain is an EVM-compatible solution designed specifically for the Shiba Inu [SHIB] community.
It has completed 1.54 billion transactions and 14.045 million blocks since inception, with an average block time of 5.01 seconds.
Source: ShibariumScan
The Shibarium network stats showed that, though the number of accounts grew slightly over the past month, the number of new accounts created was neither consistent nor voluminous. The active address count has also dropped considerably over the past month.
Shibburn noted a 10 billion SHIB burn on the 10th of November. However, these stats did not translate into a bullish outlook for the popular memecoin.
AMBCrypto took a closer look at some on-chain metrics and recent price action to understand what traders and investors can expect next.
Assessing the SHIB buyer strength
Source: Glassnode
For the majority of October, the holder accumulation ratio soared above 99%. This metric shows the proportion of active holders who are increasing and decreasing their positions. A reading of over 99% meant that almost all of them were buying- a hugely bullish sign.
This has corrected back to around 60% in recent days, but it should be noted that the spot taker CVD on CryptoQuant also shifted from bearish to neutral.
In other words, the selling pressure had taken a step back recently.
Source: SHIB/USDT on TradingView
While the metrics gave bullish signs, the 4-hour price chart remained bearish. The swing points (dotted white) showed a bearish swing structure for SHIB on the H4 timeframe.
The OBV was rising higher, but the RSI was straddling the fence with a neutral reading of 48.85 at press time.
Some signals leaned bullishly, including the OBV, while the price structure was bearish. Should traders trust the holder accumulation ratio and position themselves for price gains?
Right now, doing nothing might be a good idea. A move below the local low at $0.0000096 would be a bearish trigger, while a reclamation of the $0.00001 level would serve as a bullish trigger.
With Bitcoin [BTC] trading within a short-term range, caution is necessary.