Shiba Inus rally might not halt yet, THIS trend shows

Shiba Inu [SHIB] has rallied 10.35% in 24 hours, following an altcoin market resurgence in the past three days. In this period, the Bitcoin [BTC] dominance has dropped.

Meanwhile, the altcoin market cap expanded by 7.59%, from $683.58 billion to $735.46 billion.

The memecoin markets gains were led not by Dogecoin [DOGE] but by Pepe [PEPE]. The latter has shown surprising short-term strength against the rest of the market with a 27.7% move in a day.

A week ago, AMBCrypto had warned traders to expect a Shiba Inu price bounce. This was because of the imbalances, or fair value gaps, that the SHIB price action left behind on the 1-day timeframe.

This bounce appeared to be playing out, and some more gains can be expected in the coming days. Analysis of on-chain metrics showed that there was some network-wide accumulation underway.

Evidence for SHIB accumulation

In December, the age consumed metric saw a sizeable spike. This indicated a flurry of movement of Shiba Inu coins that had been dormant for a long while. At the same time, the mean coin age fell rapidly.

Together, they showed that both long-term and short-term SHIB holders were exiting the market in a panic. Since then, though the price has fallen lower, the mean coin age metric has been trending higher.

The age consumed metric has a few small spikes, but nothing as alarming as the surge in December. This was a sign of SHIB accumulation.

The average 3-month holder of the memecoin was still at a significant loss, according to the MVRV ratio. Contrary to appearance, this was a sign of short-term health for the rally.

The threat from profit-taking activity or break-even sellers was not imminent yet.

The 7-day moving average of the dormancy metric agreed with these findings. Dormancy calculation is based on the coin days destroyed, which indicates distribution trends.

Low dormancy values reflect upon longer-term dormant SHIB not being transacted—holders did not exhibit a hurry to sell.

While the on-chain metrics showed that a selling wave was not in progress, that does not mean that a SHIB recovery is underway.