The most famous meme coin, Shiba Inu, over the last few months, has been consolidating, and while it may look disappointing to the investors, it could potentially be the trigger for a new rally based on historic indications.
Is Shiba Inu gearing up for a new all-time high?
The Average Directional Index (ADX) for SHIB is at the lowest it has been since October 2021, and it was just after then when SHIB began its 1035.96% rally and ended up putting Shiba Inu on the map.
The lack of volatile fluctuation has basically constructed an upside pressure for the altcoin, which could be released now that the active trend has lost all its strength.
Shiba Inu price action | Source: TradingView – AMBCrypto
Now this time, it is obvious that a 1035% rally won’t occur, but the coin could benefit from the opportunity to recover some of the losses it has observed in the previous few weeks.
It already has the benefit of its community’s support, given the altcoin and its network’s established presence in the crypto space.
The most recent development in that space was the beginning of the SHIB Metaverse’s public sale, which will further attract investors into being a part of the Shiba Inu ecosystem.
Thus, the coin is basically setting itself up for a rise at this point, and the same could reinvigorate the investors’ faith in Shiba Inu, which has been dying since the last month.
While the exit of 40k SHIB holders last month was expected to be the extent of their diffidence, it did not stop until a few weeks afterward. As of today, another 40k investors had pulled out of the market, leaving Shiba Inu with just 1.07 million investors.
Shiba Inu investors | Source: Intotheblock – AMBCrypto
But the coin is still vulnerable to sudden bearishness since the broader market is still in a state of fear, and SHIB’s correlation with the king coin, Bitcoin, is rising quickly, which could cause the coin to lose its value if Bitcoin falls too.
Shiba Inu correlation with Bitcoin | Source: Intotheblock – AMBCrypto
However, if SHIB decides to go the other way and the downtrend picks up strength, it’ll end up further damaging the pockets of investors, which is hopefully just a stretch.