Shiba Inu whales buy SHIB, but is the whale pressure enough for a bull run?
Shiba Inu [SHIB]’s recovery back above the $ 0.000010 price level is an important sign that it has experienced significant strong demand. This is especially the case after the bottom just under $ 0.0000080 in June. But should investors buy with the latest result in mind?
SHIB’s current price floor is a good sign that there is strong demand at that level. However, this does not necessarily guarantee that prices will not fall. Fortunately, there are other aspects to consider that build a strong case for buyers. For example, Shiba Inu’s supply continues to decline thanks to token burns.
About 56 million Shiba Inu tokens were burned in the last 24 hours alone, according to shibburn.com. It currently has a burning rate of 29.58%, which means that the supply is gradually reduced. This will strengthen over time and a lower circulating offer will contribute to SHIB̵[ads1]7;s long-term value.
Navigating short-term headwinds
While Shiba Inu’s long-term outlook remains firm, short-term volatility means more volatility. Looking at the price chart may present some conflicting information. For example, the price has had some upside, and so has the Relative Strength Index (RSI), but the Money Flow Index (MFI) indicates significant outflows in recent days.
Source: TradingView
It can be concluded that whales have made a profit after the rise since mid-June. A look at some calculations in the chain can help to reach a similar conclusion. The stock of whales indicates that whales have sold in the last five days.
Source: Santiment
A noticeable increase in the count value for whale transactions confirms that SHIB whales have been active in recent days. However, the observations do not agree with large sales of whales. In fact, the distribution of supplies according to the balance of addresses confirms that different classes of whales have accumulated.
Addresses with more than 10 million SHIB coins have remained relatively constant over the last 30 days. This confirms that they have not sold, and therefore contributes to their ability to stay above the price level of $ 0.000010. Addresses with between one million and 10 million coins significantly increased their holdings from 0.196% on 3 July to 0.197% by 9 July.
Source: Santiment
Addresses with between 100,000 and one million SHIB tokens also achieved a marginal increase in inventory.
Is whale accumulation enough?
Even if the whales gather, the resulting buying pressure remains limited. This is probably because the data represents a small percentage of the purchase. Most crypto investors are still leaning on the side of caution. However, whale activity is still a healthy sign of the level of demand that SHIB is experiencing.
