- SHIB saw a 360% surge in whale transactions, indicating growing interest from large traders.
- Reduced exchange reserves and positive funding rates suggest SHIB may continue to rise.
Shiba Inu [SHIB] has experienced a massive 360% surge in large transactions over the past week, attracting attention from investors. This whale activity has positioned SHIB among the top cryptocurrencies with rising investment interest.
At press time, SHIB was trading at $0.00001833, showing a minor 0.56% drop. Nevertheless, this small decline has not discouraged traders. Therefore, the question arises: Can SHIB maintain this momentum and break through its resistance levels?
SHIB on-chain metrics: A positive outlook despite some concerns
Several key on-chain metrics present a mixed picture, but overall the outlook remains promising. First, the net network growth shows a slight bearish dip of 0.27%, signaling slower growth in new participants.
However, the “In the Money” metric stands at 1.75%, meaning a portion of the coin holders is currently profitable, a bullish short-term indicator. Additionally, concentration remains neutral at 0.01%, meaning no significant changes in SHIB’s distribution.
Most importantly, large transactions have surged 12.94%, indicating that whales continue to play a dominant role in the meme coin’s market activity. Consequently, whale interest could keep pushing SHIB’s price higher.
Source: IntoTheBlock
Exchange reserve decline: Less selling pressure ahead?
Looking at the exchange reserve analysis, the data reveals a 0.41% decrease over the last week, signaling a reduction in selling pressure. This decline suggests that fewer tokens are being moved to exchanges for sale.
Therefore, fewer sell-offs typically mean more investment accumulation, particularly the whales driving the 360% transaction spike. As a result, the reduced exchange reserve aligns well with SHIB’s increased whale activity and may further support price growth.
Source: CryptoQuant
SHIB funding rates: Are traders betting on more gains?
The OI-weighted funding rate for SHIB stands at 0.0097% as of October 1, 2024, showing a bullish sentiment among traders. This positive funding rate suggests that more traders are taking long positions, expecting its price to rise.
Therefore, this trend complements the whale activity and reduced exchange reserves, reinforcing the likelihood of continued gains for the meme coin.
Source: Coinglass
Realistic or not, here’s SHIB’s market cap in BTC’s terms
SHIB is likely to continue its upward trend, showing strong potential for further growth. The strong whale activity, coupled with reduced selling pressure and positive trader sentiment, creates a favorable environment for its price.
However, traders should remain aware of potential challenges like slower network growth. Nevertheless, the overall outlook for SHIB remains bullish.
