- Shiba Inu tokens avoided modest market growth and experienced notable value increases.
- SHIB performed better than other leading cryptocurrencies, but not by enough for long-term investors.
According to CoinMarketCap data, the Shiba Inu [SHIB] ecosystem’s tokens experienced double-digit growth over the previous day.
The meme governance token Bone ShibaSwap [BONE], according to the price tracking platform, experienced a 29.37% increase. However, Doge Killer [LEASH] saw a 14.71% increase during the time frame in question.
Both tokens experienced volume increases of many hundreds of percent. After SHIB announced via its official Twitter page that it would soon be releasing a decentralized portal that would support every token within its ecosystem, the performance took place.
What SHIB’s price action indicates?
SHIB demonstrated that despite being quiet for the majority of 2022, the hype surrounding the Dogecoin [DOGE] alternative was still justified. This was due to the fact that out of the top 20 cryptocurrencies during that time period, the meme coin produced the best performance after BONE and LEASH.
The daily chart showed that the +DMI (green) was making an effort to create an upward pressure based on its Directional Movement Index (DMI). The -DMI (red) showed greater strength at 27,96, though. On the other hand, the rise from the +DMI was insufficient to yet overcome the -DMI.
As a result, SHIB’s movement could be interpreted as a false uptrend because the signal had a chance of giving in to pressure from below.
The Average Directional Index (ADX) for this time period was 24.39. The ADX (yellow) indicated a turning point in supporting strength for the DMI because it had not yet reached 25. This implied that, despite the registered uptick, SHIB could still go either way.
Bridges ahead, but Shiba Inu won’t burn
Despite the doubts about price direction, Shiba Inu was unable to increase engagement with its burn activity. The 24-hour burn rate had decreased by 26.67%, according to Shibburn.
SHIB was taken out of circulation in an effort to boost the token’s value while rewarding the participant. However, these increases have not led to an increase in prices. So the recent SHIB increase was not at all affected by the burn downturn.
Santiment’s data revealed that SHIB received correspondingly more attention from the crypto community on the social front. On December 18, SHIB’s social dominance increased to 2.986%, according to the on-chain platform. At the time of publication, it had dropped to 1.247%, though.
SHIB did not give its investors any comfort despite the value increase. The Market Value to Realized Value (MVRV) ratio dropped to -14.53% as a result. This situation may be advantageous for long-term investors, as it provides the chance to increase accumulation at a fair price.