Journalist
Posted:
- SHIB worth millions has been removed from exchanges since November 2023.
- SHIB’s price moved up marginally in the last 24 hours, and a few indicators were bearish.
Shiba Inu [SHIB] has witnessed a considerable increase in its buying pressure over the past few days. Whenever buying pressure increases, it hints at a bull rally.
Therefore, to understand whether investors should expect a bull rally, AMBCrypto took a closer look at the Shiba Inu ecosystem.
Investors are buying Shiba Inu
Ali, a popular crypto analyst, recently pointed out that SHIB was experiencing a hike in buying activity. Notably, there has been a massive withdrawal of over 8 trillion SHIB from known crypto exchange wallets since November 2023.
#ShibaInu | Since November, there’s been a massive withdrawal of over 8 trillion $SHIB from known #crypto exchange wallets – that’s valued at approximately $88 million! pic.twitter.com/RLFA8N0dLI
— Ali (@ali_charts) December 24, 2023
AMBCrypto then took a look at Santiment’s data. Our analysis revealed that while SHIB’s price went up last month, its Supply on Exchanges plummeted.
At the same time, its Supply outside of Exchanges surged, proving the fact that buying pressure on the meme coin was high.
Source: Santiment
SHIB remained the whales’ favorite token. As per Whalestats, until press time, SHIB was the most traded token among the top 100 Ethereum [ETH] whales in the last 24 hours. However, the buying pressure was not coming from whales alone.
AMBCrypto’s look at Shiba Inu’s supply distribution also revealed that, apart from the whales, shrimp and fish investors were also actively buying SHIB. This was shown by the rising number of addresses holding 0–100 coins (green line).
Source: Santiment
A possible reason behind this high buying pressure was revealed by SHIB’s Network Value to Transactions (NVT) Ratio. For the uninitiated, the NVT Ratio describes the relationship between market cap and transfer volume.
Over the last month, when SHIB’s price rallied, its NVT Ratio sank.
Low NVT Ratio values have historically been periods where it is advantageous to accumulate, which might have sparked interest among investors to stockpile SHIB before its price skyrocketed.
Source: Glassnode
Is another bull rally inevitable?
To check whether high accumulation could translate into another bull rally, AMBCrypto took a look at other metrics and market indicators.
SHIB’s Weighted Sentiment registered a spike in the recent past, reflecting investors’ confidence in the meme coin. Its Social Volume also remained relatively high, which meant that Shiba Inu remained a hot topic of discussion.
Source: Santiment
Though metrics looked optimistic, SHIB’s MACD displayed the possibility of a bearish crossover.
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Additionally, both its Relative Strength Index (RSI) and Money Flow Index (MFI) registered slight downticks and were near their respective neutral marks at press time, which could herald a few slow-moving days.
At the time of writing, SHIB was up marginally in the last 24 hours, trading at $0.00001085 with a market capitalization of over $6.39 billion.
Source: TradingView