Shiba Inu has rallied over 10% in a day amid a broader altcoin market resurgence. On-chain data shows signs of network-wide accumulation and a lack of long-term holder selling, supporting the short-term bounce. However, the longer-term price trend for the memecoin remains bearish despite these positive signals.
The altcoin market cap expanded by 7.59% to $735.46 billion as Bitcoin dominance dropped. Within the memecoin sector, Pepe led gains with a 27.7% surge, outperforming Dogecoin.
A bounce for Shiba Inu was anticipated due to imbalances in its price action. This prediction is now playing out, with further gains possible in the near term.
Analysis of on-chain metrics shows evidence of SHIB accumulation. The mean coin age has been trending higher since a period of panic selling in December.
The age consumed metric has not seen significant spikes, indicating dormant coins are not being moved. This was a sign of SHIB accumulation, according to the data.
The average three-month holder remains at a significant loss based on the MVRV ratio. This situation reduces the immediate threat from profit-taking or break-even sellers.
The 7-day moving average of the dormancy metric also supports these findings. Low dormancy values reflect a lack of urgency among long-term holders to sell.
While these trends signal short-term price appreciation is possible, the longer-term price action remains bearish. The on-chain data does not guarantee a sustained recovery is underway.
