Shiba Inu: SHIB analysis - investors hoping for a metaverse takeover should read this
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The Shiba Inu (SHIB) team working on their metaverse released a new update despite the downturn in their ecosystem. In a blog post published on October 4, SHIB revealed the concept art of Canyon to their community.
While the development may have excited part of its community, some investors may not see the update as different from everything else going on in the ecosystem.
After the update, SHIB's trading volume showed no signs of being as expected. With a 10% drop in 24-hour trading volume to $178.49 million, there is almost no sign of a metaverse effect.
SHIB burning decrease
Furthermore, SHIB burning is also affected. According to ShibBurn , the burn rate decreased by 94.65% in the last 24 hours.
This caused the total number of SHIBs to be burned compared to the initial supply of VND 410.38 billion. 2.33 million SHIB is the number of tokens burned from October 3 to press time.
As for the previously released concept, a similar inscription has been seen before. However, there seems to be some disparity between the two events.
While SHIB saw a price drop at the time, the meme token enjoyed a slight 1.81% rally this time around. However, this increase does not indicate that SHIB is ready for a rally.
SHIB Chart analysis
On the daily chart, Shiba Inu seems to be heading towards a steady buy. This is revealed by the momentum displayed by the Relative Strength Index (RSI).
With the RSI at 47.08, the SHIB confirms that it has exited the sell-off zone it struggled on September 21.
After this state, the buyers of SHIB had tighter control and were able to stabilize the price of SHIB compared to the red candle.
However, indicators from the Directional Movement Index (DMI) show that SHIB sellers and buyers are struggling to determine the right fit. At press time, +DMI (yellow) is 18.30 while -DMI (red) is 17.27.
While the bullish signals have a slight edge, the Average Directional Index (ADX) shows weak strength to support the upside momentum.
With the ADX below 25 at 12:04, there's a high chance that the downside is near. In terms of the Money Flow Index (MFI), SHIB shows solid buying momentum.
At 57.07, SHIB investors seem very interested in injecting more liquidity and keeping RSI conditions.
The implication of the continued growth of MFIs is that it can maintain the current bullish momentum of SHIB. However, investors may need to pay attention to the broader crypto market sentiment.
In the event that Bitcoin [BTC] decides to go down the rankings, SHIB is likely to continue.
Oct 05, 2022