Following a brief rally post-Shibarium relaunch, SHIB has shed all its gains and resumed its downtrend.
- After a brief spike in price, SHIB’s price has begun its descent.
- This has been due to a shortfall in demand for the memecoin.
The price of Shiba Inu [SHIB] has resumed its descent after a brief surge in price when Shibarium resumed operations, according to data from CoinMarketCap.
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SHIB rose to a high of $0.0000084 on 28 August, after Shibarium, the layer-2 solution for the Shiba Inu ecosystem, and its bridge was reopened. However, with the leading memecoin exchanging hands at $0.000007858 at press time, SHIB’s value has since dropped by almost 10%.
Nothing to hold up SHIB’s value
Data from Santiment revealed that SHIB’s price rallied after the reopening of Shibarium due to a brief uptick in demand for the altcoin. Between 28 and 31 August, the count of daily active addresses that completed SHIB rose by 16%.
Likewise, new demand for the coin grew as well. Data tracked by the same data provider showed that the count of new addresses created daily to trade SHIB between 28 and 31 August increased by 19%.
However, interest in the meme coin began to wane on 31 August, and demand since fell.
The drop in demand since the beginning of September can be attributed to the sharp fall in the daily ratio of SHIB’s on-chain transaction volume in profit to loss. Data from Santiment revealed that this ratio touched a high of 3.99 on 31 August. This meant that for every SHIB transaction that returned losses, 3.99 transactions ended in profit.
However, by 1 September, this ratio had plummeted to 0.30, suggesting that the daily count of loss transactions exceeded those that were in profit. At press time, this was 0.066, signalling that most transactions completed by daily traders were done below their cost basis.
On a D1 chart, accumulation plunged among daily traders. Key momentum indicators were spotted below their respective center lines, trending downward. SHIB’s Relative Strength Index (RSI) and Money Flow Index (MFI) were 39.80 and 39.35, respectively, at press time.
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At a negative -0.02, the coin’s Chaikin Money Flow (CMF) showed that selling pressure outpaced accumulation in the market.
On the futures market, short positions outnumbered long positions. According to data from Coinglass, of all futures contracts executed in the past 24 hours, short trades accounted for 59%.
