Shiba Inu [SHIB] has experienced notably strong demand, as evidenced by its price recovery back above $0.000010. This is particularly true now that the price has recovered slightly from its June low of $0.0000080. But given the most recent result, should investors be making purchases?
The fact that SHIB’s price is currently at that level indicates that there is a lot of demand for it. It does not, however, guarantee that prices won’t go down. Fortunately, there are additional factors to take into account that support buyers’ arguments. For instance, token burns have caused the supply of Shiba Inu to continue to decline.
According to shibburn.com, about 56 million Shiba Inu tokens were burned in the previous day alone. With a current burn rate of 29.58 percent, its supply is progressively getting smaller. This will add up over time, and a reduced supply in circulation will raise the long-term value of SHIB.
overcoming recent headwinds
Shiba Inu’s long-term outlook is still stable, but short-term volatility increases volatility. The price chart may show some contradictory information. For instance, the price and the Relative Strength Index (RSI) have both seen some upside, but the Money Flow Index (MFI) shows significant outflows over the past few days.
After the increase that began in mid-June, one might draw the conclusion that whales have been making money. Finding a similar conclusion may be aided by taking a look at some on-chain metrics. According to the supply held by whales metric, whales have been selling over the previous five days.
The whale transaction count metric 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 supply based on addresses’ balances supports the accumulating of different whale classes.
In the past 30 days, addresses holding more than 10 million SHIB coins remained largely constant. This demonstrates that they have not been selling, which helps to explain why the price can continue to rise above $0.000010. Between July 3 and July 9, addresses holding one million to ten million coins significantly increased their holdings, rising from 0.196 percent to 0.197 percent.
Addresses with between 100,000 and 1,000,000 SHIB tokens in their possession also saw a slight increase in their holdings.
Is there enough whale accumulation?
Despite the whales growing, there is still only a small amount of buying pressure. This is most likely because only a small portion of that buying is represented by the data. The majority of cryptocurrency investors continue to be cautious. The whale activity is still a positive indicator of SHIB’s level of demand, though.