The most famous meme coin, Shiba Inu, has been consolidating over the past few months, and while it may look disappointing to investors, historical signs could potentially trigger a fresh rally.
Is Shiba Inu preparing for a new all-time high?
The Average Directional Index (ADX) for SHIB is at its lowest since October 2021, and shortly thereafter, SHIB began its 1035.96% rally, eventually putting Shiba Inu on the map.
Basically, the lack of volatile swings has built up upward pressure for the altcoin, which could be released now that the active trend has lost all of its strength.
Shiba Inu Price Action | Source: TradingView – AMBCrypto
This time it is evident that a 1035% rally will not occur, but the coin could benefit from an opportunity to recoup some of the losses it has witnessed over the past few weeks.
Given the established presence of altcoin and its network in the crypto space, it is already benefiting from the support of its community.
The most recent development in this area was the start of the public sale of SHIB Metaverse, which will attract more investors to become part of the Shiba Inu ecosystem.
Thus, the coin is basically setting itself up for a surge at this point, and this could reignite investor confidence in Shiba Inu, which has been dying for the past month.
Although the exit of 40,000 SHIB holders last month was expected to reflect the extent of their reluctance, this only stopped a few weeks later. As of today, another 40,000 investors had withdrawn from the market, leaving Shiba Inu with only 1.07 million investors.
Shiba Inu Investors | Source: Intotheblock – AMBCrypto
But the coin is still vulnerable to sudden bear markets as the broader market is still in fear and SHIB’s correlation with king coin Bitcoin is rising rapidly, which could result in the coin losing value if Bitcoin falls as well.
Shiba Inu correlation with Bitcoin | Source: Intotheblock – AMBCrypto
However, if SHIB decides to go the other way and the downtrend gains strength, it will continue to damage investors’ pockets, which hopefully is only a stretch.