Could this be Shiba Inu’s respite season?

• SHIB’s price increased, and an exchange supply decrease indicated renewed confidence.
• The price rise might not last despite the demand at $0.00000649.

Despite facing significant volatility and market challenges Shiba Inu’s [SHIB] price rose by 2.74% in the last seven days. The hike represents a mild halt to the tumultuous journey the meme-based cryptocurrency has had lately. 

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A Falling supply and regrouping bulls

However, there seem to be signs that the respite season might last for a while. According to Santiment, SHIB’s supply on exchanges has decreased since 10 June. And as of this writing, the metric maintained the decline at 87.6 trillion.

When plotting the supply on exchanges against an asset’s price, an increase suggests a motive to let go of some tokens. But in SHIB’s case, an increasing price alongside a falling exchange supply implies renewed optimism around the token value.

But, at the same time, it could be too soon to conclude that the long-term respite was on the horizon. Based on the technical outlook, the Moving Average Convergence Divergence (MACD) remained in the negative region.

When the MACD is below zero, it means that the downward trend was strengthening, and selling momentum was still in play. 

However, bulls had been pushing up the SHIB price since $0.00000649 after a long sliding period. If bulls sustain the buying power, then SHIB’s price might increase further and the momentum might shift away from the bearish side. 

Source: TradingView

Burns, bruises, and calm

Interestingly, the meme has changed the tune regarding its burn mechanism. Lately, the SHIB burn rate decreased for a number of days. But at the time of writing, the burn rate increased by 281% over the last 24 hours.

The SHIB burn rate involves removing some tokens from circulation and potentially increasing the long-term value as supply reduces. If the burn rate also sustains the hike, then SHIB holders might be confident in the price action when the bull market returns.

Source: Shibburn

As a result of the hike, SHIB has also enjoyed an increase in social dominance, the metric for the share of discussion an asset has around various media platforms. 

Realistic or not, here’s SHIB’s market cap in BTC terms

With 0.433%, the increase implies that SHIB has been getting some hype. This optimism was also reflected in the active addresses.

Active addresses show the number of unique addresses that have participated in transacting a token. Typically, a decrease in this metric implies reducing interest in trading a token. Therefore, SHIB’s rise to 55,700 suggests how the meme has regained the attention of investors.

Source: Santiment