The Shiba Inu cryptocurrency has recently witnessed a notable change in fortune, with a surge in its active user base. Following a slump in the number of active addresses earlier in March, a resurgence has occurred, signaling renewed interest in the token. This increase could potentially forecast an uptick in Shiba Inu’s market price, sparking curiosity about the token’s short-term potential.
Active Address Count as a Market Indicator
Active address metrics are crucial in gauging user engagement and token demand within the cryptocurrency space. A significant rise in active Shiba Inu wallets was paralleled with a sharp 213% price hike in just a week. Subsequently, the metric dipped, coinciding with a 6% price fall over 24 hours. Nonetheless, an 11% price escalation followed the rebound to 18,200 active addresses, showcasing the token’s volatility and the community’s influence on its valuation.
Shiba Inu’s Value and the NVT Signal
The NVT signal, an indicator utilized to discern if a cryptocurrency is undervalued or overvalued, has shown a correlation with Shiba Inu’s price fluctuations. A decline in the NVT signal to 125.37 from a previous high of 207.19 suggests the token might be undervalued, hinting at a potential upward price movement in the near future.
Market Sentiment and Token Circulation
Market sentiment around Shiba Inu remains optimistic, with the Weighted Sentiment indicator staying above the neutral threshold. The positive sentiment, however, has slightly decreased from earlier readings, yet it still predominantly showcases optimistic market perception. Concurrently, on-chain data indicates a reduction in the circulation of Shiba Inu tokens, implying a drop in trading activity since the start of the month.
These various indicators paint a complex picture of Shiba Inu’s market behavior, with active addresses, NVT signal, sentiment, and token circulation all contributing to the cryptocurrency’s dynamic price movements.