- SHIB depreciated by more than 4% in the last 24 hours
- Its supply on exchanges dropped – A sign that investors were accumulating SHIB
Shiba Inu [SHIB] has registered a promising uptick over the last few weeks, owing to the bullish market condition. Thanks to the same, the total number of SHIB holders has also risen recently. However, everything changed over the last 24 hours as the market turned bearish, leading to most cryptos falling on the charts.
What is happening to Shiba Inu…
Ali, a popular crypto-analyst, recently shared a tweet highlighting a key SHIB metric. According to the same, the memecoin has surged by more than 55% in the last three months alone. In fact, the tweet also mentioned that nearly 90,000 addresses hold over 422 trillion SHIB at $0.000016.
#ShibaInu has seen a 55% increase in the last 3 months, staying relatively quiet during the recent altcoin season.
While there's potential for growth ahead, $SHIB faces a major resistance zone. Nearly 90,000 addresses hold over 422 trillion #SHIB at $0.000016. pic.twitter.com/LE6kpLb1Or
— Ali (@ali_charts) December 9, 2023
However, the tables turned as the market turned bearish. The second-largest memecoin’s price registered a drop of 3.4% in the last 24 hours alone.
According to CoinMarketCap, at the time of writing, it was trading at $0.000009686 with a market capitalization of over $5.7 billion. Its trading volume also dropped by 17% in the last 24 hours, meaning that investors were less interested in trading SHIB.
Right opportunity to accumulate Shiba Inu?
While the memecoin’s price plummets, it might be the right opportunity for investors to accumulate tokens. This fact was proven by a key metric called the Network Value to Transactions (NVT) Ratio.
To clear the air, the NVT ratio describes the relationship between market cap and transfer volume. According to Glassnode, low NVT ratio values have historically been periods where it is advantageous to accumulate and often coincide with market bottoms and trending bull markets.
As per the latest data, SHIB’s NVT ratio registered a significant drop, suggesting a buying opportunity for investors before the memecoin’s price gains bullish momentum again.
Source: Glassnode
AMBCrypto then had a look at SHIB’s exchange reserves to better understand whether buying pressure was high. As per our analysis, SHIB’s supply on exchanges dipped sharply last week while its supply outside of exchanges increased. This clearly meant that retail investors have been actively buying the memecoin while its price was low.
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Whale activity around the memecoin remained relatively stable last week. However, the big players did sell their Shiba Inu holdings, as is evident from the drop in its supply held by top addresses.
Source: Santiment
