shiba inus [SHIB]’s return above the $0.000010 price level is an important sign that it has seen considerably strong demand. This is especially the case after hitting a low just below $0.0000080 in June. But should investors buy given the latest results?
The current floor price of SHIB is a good sign that there is strong demand at this level. However, this does not necessarily guarantee that prices will not drop. Fortunately, there are other aspects to consider that make a solid case for buyers. For example, the Shiba Inu supply continues to dwindle thanks to token burns.
About 56 million Shiba Inu chips have been burned in the last 24 hours alone according to shibburn.com. It currently has a burn rate of 29.58%, which means that its supply is gradually decreasing. This will get worse over time and lower circulating supply will contribute to SHIB’s long-term value.
Navigating Short-Term Headwinds
While the Shiba Inu’s long-term outlook remains firm, short-term volatility means there is more volatility. Examination of the price chart may present conflicting information. For example, the price has seen some upside, as has the Relative Strength Index (RSI), but the Money Flow Index (MFI) is showing significant outflows over the past few days.
One could conclude that the whales have made profits after the rise since mid-June. A review of some on-chain metrics can help reach a similar conclusion. The measure of supply held by the whales suggests that the whales have sold out over the past five days.
A noticeable increase in the number of whale transactions confirms that SHIB whales have been active in recent days. However, the sightings are not consistent with massive sales by whales. In fact, the distribution of supply by the scale on addresses confirms that different classes of whales have been accumulating.
Addresses containing more than 10 million SHIB coins have remained relatively constant over the past 30 days. This confirms that they haven’t sold, thus contributing to its ability to hold above the $0.000010 price level. Addresses holding between one million and 10 million coins increased their holdings significantly, from 0.196% on July 3 to 0.197% on July 9.
Addresses holding between 100,000 and one million SHIB tokens also saw a marginal increase in their holdings.
Is the accumulation of whales sufficient?
Although the whales are piling up, the resulting buying pressure remains limited. This is likely because data is a small percentage of these purchases. Most crypto investors still err on the side of caution. However, whale activity is still a healthy sign of the level of demand SHIB is experiencing.