Many Shiba Inu investors are perplexed about the crypto’s price trend over the past few weeks. Although Shiba Inu went through a phase of no significant price movement for two weeks, recent data from the blockchain suggests that the market sentiment might be turning bullish once more. Notably, the rate of selling has significantly decreased this week. Additionally, Shiba Inu has reached a significant threshold in terms of the number of wallet addresses, potentially indicating an influx of new holders.
Shiba Inu Sell Pressure Drops
The value of Shiba Inu is influenced significantly by investor buying and selling activity. Notably, recent on-chain information suggests that selling pressure is lessening, which may result in an increase in SHIB price within the next week. Specifically, IntoTheBlock’s historical data on active addresses shows a trend towards wallet holders breaking even or making a profit, indicating a potential shift in market sentiment.
Approximately 74.6% of the traders in this group are currently active, making them the primary drivers of trading activity. However, it’s unclear whether they are selling or adding to their positions at the present price due to their “at the money” status.
This metric signals more active engagement from the profitable group of addresses, but surprisingly, the average year-to-date activity for these “in the money” addresses has dropped below 18%. Traders in this category, who typically sell once they’ve made a profit on their investments, have not executed a significant number of transactions lately. This could mean that they are choosing to hold onto their assets longer, aiming to boost their unrealized profits further.
In the last week, on-chain information indicates that approximately 4% of SHIB‘s total circulating supply has been transferred from short-term holders to mid-term holders. Short-term holders typically sell their assets within a month, whereas mid-term holders keep their assets for longer periods, ranging from a month to a year. This shift has resulted in a decrease in the pressure on SHIB to be sold, contributing to its current trend.
What’s Next For SHIB?
As buyers’ demand increases and investors hold onto SHIB for longer periods, there are signs that this cryptocurrency may soon change direction and resume its upward trend. The current price of SHIB is $0.00002766, representing a 1.1% decrease in the last day but a 4.65% gain over the past week.
Shiba Inu has reached a significant achievement with over 4 million active wallet addresses. This growth may indicate that an uptick in activity is imminent. If past trends are any indication, such an increase could mirror the bullish trend from the 2021 market surge. As per crypto expert Bunchhieng’s analysis, if history repeats itself, SHIB could potentially reach a value of $0.0001 during this upward swing.
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2024-04-12 20:46