Shiba Inu Long Positions Surge Despite 25% Price Drop Over A Month — Case For Buying This Dip?

Shiba Inu SHIB/USD has exhibited a lackluster price action over the last month, but a few crucial technical indicators tied to the dog-themed cryptocurrency signaled a rebound.

What happened: The world's second-largest meme coin by market capitalization was in the middle of a corrective phase, falling over 3% over the week and around 25% in a month.

About 55% of SHIB holders were under losses at the time of writing, according to data from IntoTheBlock, while the network growth rate was sluggish.

However, such periods of muted price activity could provide opportunities for high-conviction investors to add to their positions.

See Also: US Could Sell Its Gold To Set Up Potential Bitcoin Reserve, Says Bernstein: Will It Ignite A ‘Global Race’ To Buy BTC?

The Momentum indicator, which compares the short-term price and long-term price, flashed a "Buy" signal for SHIB, according to TradingView. 

Additionally, the Moving Average Convergence Divergence indicator, which compares two exponential moving averages of price, indicated a bullish outlook. 

The optimism was also reflected in SHIB's derivatives market, with over 51% of traders with active contracts positioned long on the meme coin, according to Coinglass.

Meanwhile, SHIB witnessed an astronomical 552% jump in burn rate in the last 24 hours, with about 14.69 million tokens getting removed from circulation. 

Typically, such supply squeezes add to deflationary pressure and boost a cryptocurrency's value.

Price Action: At the time of writing, SHIB was exchanging hands at $0.00001518, down 2.95% in the last 24 hours, according to data from Benzinga Pro.

Image via Shutterstock

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