Shiba Inu (SHIB) has recently experienced a notable surge, mirroring a broader upswing in the altcoin market. This rally comes at a time when Bitcoin's dominance is waning, creating fertile ground for altcoins to gain momentum.
Shiba Inu's Recent Momentum
SHIB has seen a significant 10.35% rally in just 24 hours, part of a larger altcoin market resurgence where the total market capitalization expanded by 7.59%. This period saw a decline in Bitcoin's market dominance, allowing other cryptocurrencies to flourish. Notably, while the memecoin market gained, Pepe (PEPE) led the charge with a surprising 27.7% increase, though SHIB's bounce was anticipated due to prior market imbalances. Further gains for SHIB are expected in the near term.
On-Chain Indicators Point to Accumulation
Analysis of on-chain metrics provides compelling evidence of network-wide accumulation for Shiba Inu. While a December spike in 'age consumed' and a rapid fall in 'mean coin age' initially signaled panic selling by both long-term and short-term holders, these trends have since reversed. The 'mean coin age' has steadily increased, and 'age consumed' spikes have diminished, collectively indicating that accumulation is now underway. Furthermore, despite many 3-month holders being at a loss (according to the MVRV ratio), this surprisingly suggests short-term health, as it reduces the immediate threat of profit-taking or break-even selling.
Dormancy and The Outlook Ahead
The 7-day moving average of the dormancy metric further supports these findings. Low dormancy values, which reflect a lack of transactions by long-term dormant SHIB, confirm that holders are not rushing to sell their assets. While these on-chain trends strongly suggest the potential for short-term price appreciation due to a lack of selling pressure and ongoing accumulation, the longer-term price action for Shiba Inu remains bearish.
