Shiba Inu [SHIB]The recovery from back above the $0.000010 price level is an important sign that there has been clearly strong demand. This is especially the case after it bottomed just below $0.0000080 in June. But should investors buy given recent results?
SHIB’s current price floor is a good sign that there is strong demand at this level. However, this does not necessarily guarantee that prices will not drop. Fortunately, there are other aspects to consider that make a strong argument for buyers. For example, Shiba Inu’s supply continues to decrease thanks to Token Burns.
According to shibburn.com, around 56 million Shiba Inu tokens have been burned in the last 24 hours alone. It currently has a 29.58% burn rate, meaning its supply is gradually decreasing. This will increase over time, and lower circulating supply will add to SHIB’s long-term value.
Navigating in short-term headwinds
While Shiba Inu’s long-term outlook remains firm, short-term volatility means there is more volatility. A look at the price chart may contain conflicting information. For example, the price has seen some upside, as has the Relative Strength Index (RSI), but the Money Flow Index (MFI) is pointing to significant outflows over the past few days.
One could conclude that the whales are making gains after the uptrend since mid-June. Looking at some on-chain metrics can help draw a similar conclusion. The metric held by whales suggests that whales have been sold in the past five days.
A notable spike in the number of whale transactions metric confirms that SHIB whales have been active for the past few days. However, the observations are not consistent with larger whale sell-offs. In fact, the distribution of offers through the balance of addresses confirms that different walk classes have accumulated.
Addresses with more than 10 million SHIB coins have remained relatively flat over the past 30 days. This confirms that they have not sold, which adds to their ability to stay above the $0.000010 price level. Addresses holding between one million and 10 million coins increased their holdings significantly, from 0.196% on July 3 to 0.197% by July 9.
Addresses holding between 100,000 and one million SHIB tokens also saw a small increase in their holdings.
Is the accumulation of whales enough?
Although the whales are piling up, the resulting buying pressure remains limited. This is likely because the data accounts for only a small percentage of those purchases. Most crypto investors are still on the safe side. However, whale activity is still a healthy sign of the demand SHIB is experiencing.