The price of Shiba Inu (SHIB) has shown some positive signals this week, remaining above the $0.0000065 range. On-chain data indicates a positive uptrend in the social sentiment of the Shiba Inu community. Could this mean a bullish reversal for SHIB?
On June 14, a well-known Shiba Inu developer named Shytoshi Kusama hinted at an upcoming product launch in a cryptic tweet. The following day, another key contributor, Lucie Shib, tweeted that the memecoin project is alive and actively building.
On-chain data reveals that these important announcements have had a positive impact on the social sentiment within the SHIB community. Here’s how it could potentially trigger a bullish reversal.
After a tumultuous start to the month, Shiba Inu investors are feeling more optimistic. Santiment’s Weighted Sentiment metric measures the mood of a specific blockchain community by comparing the number of positive comments to negative comments about a project.
As shown below, SHIB’s Weighted Sentiment began trending upwards around June 9. As of June 16, it currently sits at around -1.43, representing a 13% positive improvement within the past week.
When Weighted Sentiment starts to rise during a price correction, it indicates a potential bullish reversal. If the recent team announcement translates into a widely accepted product launch, SHIB’s price may soon enter recovery mode.
SHIB Tokens Are Flying off the Shelves
Furthermore, a significant decrease in the balance of SHIB tokens available on exchanges is another crucial factor pointing to a potential bullish reversal.
The Balance on Exchanges represents the number of tokens investors have deposited on recognized cryptocurrency exchanges.
The Glassnode chart below illustrates how SHIB holders have moved 4 trillion tokens out of exchanges between June 9 and June 16.
When investors move tokens onto exchanges, it may indicate their intention to sell. This can be observed in the chart above, as the 15% drop in SHIB price on June 9 followed a significant increase in exchange supply on June 8.
However, with the rapid decline in the Balance on Exchanges for SHIB, the selling pressure is likely to decrease in the coming days.
SHIB Price Prediction: Potential Bullish Reversal Toward $0.000010
According to IntoTheBlock’s Global Price distribution data, Shiba Inu is likely to experience a bullish reversal towards $0.000010.
However, the presence of a sell-wall created by 88,000 addresses that purchased 32 trillion SHIB tokens at the $0.000008 mid-range could trigger a pullback.
If this resistance is overcome, Shiba Inu’s price could rally towards $0.000010.
However, if the SHIB price falls below $0.000006, the bearish scenario could prevail. But there are 19,260 addresses that purchased 8.82 trillion tokens at the minimum price of $0.000006, forming a potential buy-wall.
That being said, if the support level at $0.000006 breaks, the Shiba Inu bears might push the price down to $0.000005.
Disclaimer
In accordance with Trust Project guidelines, this article is for informational purposes only and should not be considered financial or investment advice. Bitrabo is committed to providing accurate and unbiased reporting, but market conditions can change without notice. Always conduct your own research and consult with a professional before making any financial decisions.
