Connect with us
Active Currencies 14916
Market Cap $2,524,651,367,253.90
Bitcoin Share 51.54%
24h Market Cap Change $-2.36

Shiba Inu: Buying pressure rises, is a rally incoming?

3min Read

Not only whales, but fish and shrimp have also been exerting buying pressure on SHIB.

Shiba Inu: Buying pressure rises, is a rally incoming?

Share this article

  • SHIB worth millions has been removed from exchanges since November 2023. 
  • SHIB’s price moved up marginally in the last 24 hours, and a few indicators were bearish. 

Shiba Inu [SHIB] has witnessed a considerable increase in its buying pressure over the past few days. Whenever buying pressure increases, it hints at a bull rally.

Therefore, to understand whether investors should expect a bull rally, AMBCrypto took a closer look at the Shiba Inu ecosystem.

Investors are buying Shiba Inu

Ali, a popular crypto analyst, recently pointed out that SHIB was experiencing a hike in buying activity. Notably, there has been a massive withdrawal of over 8 trillion SHIB from known crypto exchange wallets since November 2023.

AMBCrypto then took a look at Santiment’s data. Our analysis revealed that while SHIB’s price went up last month, its Supply on Exchanges plummeted.

At the same time, its Supply outside of Exchanges surged, proving the fact that buying pressure on the meme coin was high.

Source: Santiment

SHIB remained the whales’ favorite token. As per Whalestats, until press time, SHIB was the most traded token among the top 100 Ethereum [ETH] whales in the last 24 hours. However, the buying pressure was not coming from whales alone.

AMBCrypto’s look at Shiba Inu’s supply distribution also revealed that, apart from the whales, shrimp and fish investors were also actively buying SHIB. This was shown by the rising number of addresses holding 0–100 coins (green line). 

Source: Santiment

A possible reason behind this high buying pressure was revealed by SHIB’s Network Value to Transactions (NVT) Ratio. For the uninitiated, the NVT Ratio describes the relationship between market cap and transfer volume.

Over the last month, when SHIB’s price rallied, its NVT Ratio sank.

Low NVT Ratio values have historically been periods where it is advantageous to accumulate, which might have sparked interest among investors to stockpile SHIB before its price skyrocketed. 

Source: Glassnode

Is another bull rally inevitable?

To check whether high accumulation could translate into another bull rally, AMBCrypto took a look at other metrics and market indicators.

SHIB’s Weighted Sentiment registered a spike in the recent past, reflecting investors’ confidence in the meme coin. Its Social Volume also remained relatively high, which meant that Shiba Inu remained a hot topic of discussion.

Source: Santiment

Though metrics looked optimistic, SHIB’s MACD displayed the possibility of a bearish crossover.

Is your portfolio green? Check out the SHIB Profit Calculator     

Additionally, both its Relative Strength Index (RSI) and Money Flow Index (MFI) registered slight downticks and were near their respective neutral marks at press time, which could herald a few slow-moving days.

At the time of writing, SHIB was up marginally in the last 24 hours, trading at $0.00001085 with a market capitalization of over $6.39 billion.

Source: TradingView


Dipayan is a full-time journalist at AMBCrypto. He has 2 years of experience in the content creation industry. A graduate in journalism, Dipayan has a keen interest in keeping himself updated with the latest developments in the crypto-space. He is a singer and a guitarist who also enjoys going on long bike rides.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.