Shiba Inu (SHIB) has recently captured the attention of cryptocurrency investors with an astounding 360% surge in large transactions over the past week. This spike in whale activity has positioned SHIB among the top cryptocurrencies, igniting a renewed interest from both seasoned traders and newcomers alike. At press time, SHIB was trading at $0.00001833, showing a slight 0.56% drop. However, this minor decline has not dampened trader enthusiasm. The pressing question remains: Can SHIB sustain this momentum and break through its resistance levels?
On-Chain Metrics Paint A Mixed Picture
When diving into SHIB’s on-chain metrics, the outlook appears cautiously optimistic, despite some concerns. Net network growth has experienced a minor bearish dip of 0.27%, indicating a slowdown in attracting new participants. However, the “In the Money” metric stands at 1.75%, meaning a portion of holders is currently profitable—a bullish sign for the short term.
Moreover, the concentration remains neutral at 0.01%, indicating no significant shifts in SHIB’s distribution. Most notably, the increase in large transactions—up 12.94%—suggests that whales are continuing to play a pivotal role in SHIB’s market activity. The substantial whale interest could potentially drive SHIB’s price higher in the coming days.
Analyzing the exchange reserves, we find a 0.41% decrease over the past week, signaling a reduction in selling pressure. Fewer tokens moving to exchanges for sale often correlates with increased investment accumulation, particularly from the whales driving the current 360% transaction spike. This trend of dwindling exchange reserves aligns harmoniously with SHIB’s surging whale activity and could further bolster price growth.
Positive Trader Sentiment – Are Gains on the Horizon?
The funding rates for SHIB further enhance the positive sentiment surrounding the coin. As of October 1, 2024, the Open Interest (OI)-weighted funding rate for SHIB stands at 0.0097%, reflecting a bullish sentiment among traders. This positive funding rate indicates that a significant number of traders are taking long positions, anticipating a rise in SHIB’s price.
With strong whale activity, reduced selling pressure, and a favorable funding rate, the likelihood of continued gains for SHIB appears robust. While challenges, such as slower network growth, linger, the overall outlook remains bullish.
Also Read: Shiba Inu Burn Rate Skyrockets 320% As Over 10 Million SHIB Burned, But Price Continues To Slide
A Promising Future for SHIB
In conclusion, Shiba Inu’s recent activity paints a picture of potential growth. The combination of increased whale transactions, diminishing selling pressure, and positive trader sentiment creates an encouraging environment for SHIB’s price trajectory.
As traders remain vigilant about the market dynamics, it’s essential to consider both the optimistic indicators and the potential challenges ahead. For now, SHIB seems poised for an upward trend, and investors will be watching closely to see if it can break through its resistance levels and sustain its remarkable momentum.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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