Will Whale Buying Pressure On SHIB Be Enough To Trigger A Rally?

SHIB’s bounce back above the $0.000010 price level is an important sign that Shiba Inu whales are actively buying.

A buying force lifted the price of SHIB from the $0.0000080 low back to above $0.000010. There is no guarantee that the price of Shiba Inu will not fall again. An optimistic note however suggests that the coin’s long-term value as around 56 million Shiba Inu tokens have been burned in the last 24 hours alone according to shibburn.com.

While Shiba Inu’s long-term outlook remains firm, short-term volatility means there is more volatility.  Looking at the price chart may present some conflicting information. For example, the price has seen some upside and so has the Relative Strength Index (RSI), but the Money Flow Index (MFI) indicates significant outflows in the last few days.

After the increase that began in mid-June, one might draw the conclusion that whales have been generating money. Finding a similar conclusion may be aided by taking a look at various on-chain measurements. According to the supply held by whales metric, whales have been selling during the previous five days.

The whale transaction count statistic has seen a significant increase, indicating that SHIB whale activity has increased recently. The observations, however, do not support significant whale sell-offs. In fact, the distribution of supplies based on addresses’ balances supports the accumulation of distinct whale classes.

In the past 30 days, addresses holding more than 10 million this coins stayed largely stable. This demonstrates that they have not been selling, which helps to explain why the price can continue to rise over $0.000010. Between July 3 and July 9, addresses holding 1 million to 10 million coins dramatically boosted their holdings, rising from 0.196% to 0.197%.

Addresses holding between 100,000 and one million tokens also achieved a marginal increase in their holdings.

Is SHIB whale accumulation enough?

Although the whales are accumulating, the resulting buying pressure remains limited. This is likely because the data represents a small percentage of that buying. Most crypto investors are still leaning on the side of caution. However, the whale activity is still a healthy sign of the level of demand that SHIB is experiencing.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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