Will SHIB be able to regain its former glory?

Shiba Inu (SHIB) is one of the most talked about coins both inside and outside the crypto space. During its heyday, people almost always associated cryptocurrencies with Bitcoin or Shiba Inu.

Well, those glory days are long gone, after the price fell from the all-time high (ATH) of $0.000088 to the current $0.000028, a lot has changed.

However, as the broader market stabilizes, the SHIB has also bottomed and is showing some hope for a recovery.

Earlier this month, it gained more than 50% in three days and more or less held its position. Technically, it broke the 50 DMA and 200 DMA the same day and broke the immediate resistance the next day.

Source: Trade View

Several on-chain indicators are also showing optimism towards Shiba Inu. The corrected price DAA divergence for the SHIB, which has flashed serious sell signals, has finally shown some positivity on the chart. Small green bars will start to form at the end, which could indicate that this is yet to come.

Price corrected divergence DAA | Source: Santiment

Shiba Inu’s Network Value to Transaction (NVT) Ratio is also low despite the price rally, suggesting an attractive price proposition for SHIB. Therefore, a good buying opportunity for investors who like thrills and can take risks. As the price is holding above the critical support, this can also be seen as a low-risk entry point with great upside potential.

Ratio of NVT | Source: Santiment

However, there are a few worrying signs people need to look out for before committing. The supply of SHIBs held by addresses other than the top exchanges has declined recently. On the other hand, the supply on the stock exchanges rose sharply.

SHIB of non-exchange addresses vs. exchange | Source: Santiment

And with it, so has the Shiba Inu’s social media dominance, which was once one of his most defining traits. Take a look at the chart below, back to its heyday – SHIB was by far one of the most active coins in terms of social engagement and has now lost its traction.

dominance in social networks | Source: Santiment

All in all, it’s safe to say that things are looking pretty bleak for Shiba Inu. It may take time to regain its lost luster and recover. However, improving overall market sentiment could help SHIB greatly. let time answer

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