Assets covered: Shiba Inu (SHIB)

Metrics used: Social volume, Trading volume, Active addresses, Age Consumed

Quick facts

• Shiba Inu is an anonymous project that appeared in August 2020, and the main developer called himself Ryoshi.
• Officially, SHIB is a decentralized community experiment. The SHIB token is the first token launched, allowing people to hold billions or even trillions of tokens. Simply because of extremely low pricing.
• They call it the "Dogecoin Killer".
• The token was initially traded on Uniswap (ETH/SHIB). There are plans to launch its own decentralized exchange ShibaSwap in future. SHIB is likely to be used for rewards.
• It is said that 50% of the total supply of SHIB is put into Uniswap, and the private key has been discarded.
• The remaining 50% of SHIB was sent to Vitalik Buterin. 
• They believe it was a fair issuance, because the team does not hold tokens and keys.

What to expect? Is any fundamental analysis valid for this sort of coin? We will see. At the moment we can recognize a few bullish and a few bearish cases for SHIB.

Bearish cases

1. Shiba Inu is #1 coin in Santrends:

Our study says this could be a sign of a local top. Price tends to correct after the coins hits and starts to decline from top-3 in Santrends.

We do also see a triple volume divergence on SHIB, when three types of "volumes" decline on a price uptrend. These could indicate a relatively high risk of correction:

2. Social volume declining

3. Trading volume declining

4. Onchain activity declining, active addresses

Bullish cases

1. Supply on exchanges dropped

Reduced supply on exchanges could indicate reduced potential sell pressure, which is good for a coin.

2. Age consumed is not spiking

We do not see any significant age consumed spikes lately. It's also potentially good for a coin because these spikes often indicate a possible trend reversal. Current SHIB trend is up and age consumed is not likely to break it. In other words, there are no mature SHIBA INU olders, or no whales, that even moved SHIB last days. They keep holding.

Take care.

Bonus

SHIBA INU performance in a "super doggish" four month old portfolio:

Disclaimer: The opinions expressed in the post are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.