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Shiba Inu is continuously moving upward after the beginning of the new year, and the profitability of the token has increased significantly, gaining more than 4% to the metric, with 1 out of 5 holders holding the token at a profit.
Market recovery
Generally, the on-chain and exchange data is turning back to green, showing that SHIB is not only moving upward on the market but attracting more investors and the fresh funds it desperately needed since November.
At a certain point, Shiba Inu's profitability tumbled to 13%, making it one of the least profitable assets across the whole industry. Luckily, the market hit the recovery pedal and has gained around 7% to its capitalization, pushing bullish sentiment back on the crypto trading community.
According to the composition of indicators on analytical boards like IntoTheBlock, Shiba Inu's performance is relatively neutral and is not yet showing any signs of an extremely strong recovery as we saw on assets like Lido or ZIL.
Technical analysis
From a technical perspective, Shiba Inu has just reached the first resistance level on the chart, reflected in the 50-day moving average. It is not yet clear if the existing volume will be enough to push the price of the token upward, breaking the existing resistance level.
Realistically, the state of the market should be the main driver, if not the only driver, for Shiba Inu and other meme assets. Unfortunately, we are seeing the prevalence of sell orders across cryptocurrency exchanges, which is most likely a sign of active profit taking. However, without the noteworthy reversal of the market, SHIB continues moving upward.
Tomiwabold Olajide
Gamza Khanzadaev
