Shiba Inu (SHIB) price hit a local low of $0.0000085 on Friday, May 12. By Monday morning, the third largest memecoin by market capitalization had gained 5% to end a seven-day losing streak. The recent positive turn in critical on-chain indicators could lead investors to make bullish SHIB price predictions.
The global memecoin market has been in a downtrend recently, with large market capitalization projects like PEPE and DOGE experiencing double-digit losses.
But, with unrealized losses approaching critical levels, Shiba Inu’s long-term investors appear to be holding out for more price gains before selling.
Will the bullish SHIB price prediction be validated despite the ongoing memecoin market meltdown?
Recent Price Jump Was Not Fuelled By Media Hype
The Shiba Inu team has recently shared a few partnership announcements and product updates. However, on-chain data suggests that the media reactions did not particularly fuel the recent 5% SHIB price gain.
According to Santiment data, SHIB Social Volume has been in a persistent decline for 10 consecutive days. The chart below shows how SHIB Social Volume dropped from 2,706 to 1,079 between May 5 and May 15, 2023.
Social Volume tracks the number of times a blockchain project is mentioned across the relevant crypto-media channels. When it declines, it suggests that there is minimal media hype surrounding the project.
Notably, even as the SHIB price increased by 5% between May 11 and May 15, the Social Volume declined by another 17% during that period.
This indicates that the current SHIB meme coin price jump is powered by marginal improvement in network fundamentals rather than media hype.
Long-term Investors are Still Holding Out For More Gains
Moreso, the SHIB price uptrend could also be attributed to long-term investors growing unwilling to sell their tokens. Indicatively, SHIB Age Consumed began to decline when SHIB price dropped below $0.000009 on May 8.
As of May 15, the Shiba Inu Age Consumed has reduced by 85% from 160.55 trillion on May 8 to 22.62 trillion.
Age consumed measures the total number of days since each traded coin was last moved between addresses. As observed above, a decrease in age consumed suggests that long-term investors are unwilling to sell at current prices.
If it continues to decline, it may lead to a significant drop in selling pressure and validate the bullish SHIB price prediction.
Likewise, the low levels of Social Volume also suggest that there is room for more investors to Ape in on the Shiba Inu rally when the market sentiment shifts.
SHIB Price Prediction: All Eyes on $0.000012
According to IntoTheBlock’s Exchange On-chain Market Depth, SHIB is likely to scale the $0.0000095 resistance before holders can be confident of the bullish Shiba Inu price prediction.
At that zone, bearish traders looking to sell 177.38 billion SHIB could halt the rally.
But if the positive SHIB price prediction plays out, the price will likely rally toward $0.000012.
Still, the bearish trend could return if SHIB price drops below the $0.0000085 support zone. But the buy-wall of 277 billion SHIB, 5% below the current market price, will likely prevent the drop.
Although unlikely, failure to hold the $0.0000085 support could invalidate the bullish SHIB price prediction and trigger a further 15% downswing toward $0.0000074.
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