Shiba Inu’s revival beyond the $0.000010 mark is a crucial signal that the meme coin has seen substantial demand.
That’s after SHIB bottomed slightly beneath $0.0000080 during June’s sessions. However, should investors buy the alt considering the recent outcome?
Shiba Inu’s current foothold is a lucrative signal of massive demand at the mark. Nevertheless, that doesn’t imply SHIB is immune to price drops.
The best thing is there are different factors to consider that ensure a controlled environment for buyers. For instance, SHIB’s supply diminished following token burns.
Shibburn.com reveals the network burnt approximately 56% million SHIB coins during July 8’s final 25 hours. The burn rate now stands at 29.58%, meaning gradual supply declines.
That will compound with time and reduce the circulating supply, contributing to Shiba Inu’s value in the long run.
Assessing Near-Term Headwinds
Though the long-term picture for Shiba Inu remains stable, the near-term outlook reveals more volatility. Evaluating the price chart might showcase some conflicting data.
For instance, the price and the RSI (Relative Strength Index) have seen some uptrends, while the MFI (Money Flow Index) shows substantial outflows within the past few days.
One may admit that whales have made profits following the upswings since mid-June. Evaluating some on-chain indexes might help reach similar conclusions. The whale supply metric shows whales have sold within the past five days.
A significant surge in the whale transfer count index shows Shiba Inu whales were active over the past few days. Nevertheless, these observations do not match the whale sell-offs.
Furthermore, the address balance supply distribution shows different whale categories have been scooping the token.
Addresses with over ten million Shiba Inu tokens stayed somewhat constant within the past 30 days. That shows they refrained from selling, hence accountable for keeping prices beyond $0.000010.
Addresses holding 1 million to ten million tokens increased holdings substantially to July 9’s 0.197% from July 3’s 0.196%. Also, wallets with 100K to 1 million coins increased their holdings marginally.
Is Whale Accumulation Adequate
Buying momentum remains limited despite buying activities by whales. That’s likely because the accumulation shows a small percentage purchasing the altcoin.
Meanwhile, most investors remain cautious. Nevertheless, the whale activity remains a healthy signal of improved demand for SHIB.