Shiba Inu up 30% from August low as chain data points to further gains ahead

• Shiba Inu is extending gains by 30% from its August 5 low and is trading at $0.00001415.
• The Shibarium Layer 2 chain invites developers to build the ecosystem by introducing a comprehensive set of tools.
• Shiba Inu traders posted losses of nearly $14 million on Thursday, a likely sign of capitulation.

Shiba Inu (SHIB), the second-largest meme coin by market cap, saw a large surge in losing traders on Thursday, on-chain data showed, even as SHIB rallied 30% from its August 5 low of $0.00001078. This capitulation event could be a sign of a local price low forming, increasing the chances of a further price rebound.

Meanwhile, the meme coin team announced on Wednesday that it has released a developer toolkit to make it easier to build on Shibarium, Shiba Inu’s Layer 2 chain.

Shibarium invites developers with a set of tools and launch devportal

Shiba Inu’s Layer 2 chain has launched a portal for developers to build into the ecosystem. Lucie, a Marketing Director at SHIB, announced the toolkit and program for developers to build on Shibarium.

Shiba Inu values ​​on the chain highlight the potential for earnings

Shiba Inu holders saw losses from their holdings on Thursday, according to Santiment data, which shows that SHIB traders suffered losses of $13.42 million after dumping their SHIB tokens. Since August 1, SHIB traders have made losses of $54.61 million, as seen in the chart below.

When a large volume of SHIB tokens are sold at a loss, it is a sign of capitulation on the part of investors. such episodes tend to be followed by a recovery in the asset price.

Shiba Inu NPL

Shiba Inu’s Market Value to Realized Value (MVRV) gives an idea of ​​how overvalued or undervalued a symbol is. Over the seven days, MVRV for Shiba Inu stands at -1.782%, indicating that the asset is undervalued. This is a significant change from the 1.023% recorded in the 30-day timeframe.

Shiba Inu MVRV report (7 days) and (30 days)

SHIB is up 30% from its August low

Shiba Inu (SHIB) is trading at $0.00001415 at the time of writing. SHIB has gained 30.54% since its August 5 low of $0.00001078, erasing losses from the early August crypto bloodbath.

Moving Average Convergence Divergence (MACD), a momentum indicator, shows green histogram bars above the neutral line. This suggests that there is an underlying positive momentum in the SHIB price trend. However, traders should watch any changes in the indicator for signs of a trend reversal.

If the MACD line crosses below the signal line, it could imply an underlying negative momentum, prompting a price correction.

SHIB/USDT Daily Chart

On the downside, Shiba Inu could sweep liquidity to $0.00001285, a key support level for the meme coin throughout August.