Shiba Inu saw significant market activity on October 16, as bulls purchased nearly 3 trillion SHIB tokens, helping the cryptocurrency recover and close the day with gains. On-chain data from IntoTheBlock shows that bulls purchased 2.95 trillion SHIB tokens. The purchases, worth $53 million, came at an average price of $0.00008 per token.
This large buyback represents about 0.5% of the assetâs circulating supply, signaling a significant increase in demand. Traditionally, large buybacks like this typically indicate increased interest from investors, which can fuel further price momentum in the market.
Interestingly, the data also shows an increase in selling volume on the same day. Short sellers, or those who account for 1% of daily volume, sold 2.86 trillion SHIB, worth $51.4 million.
Despite almost equal buy and sell volumes, the token still had an excess demand of 81.41 billion tokens on October 16. This trend continues the previous day's bullish trend, when the excess demand was 201 billion tokens.
Bullish Momentum Continues as Token Recovers
The Shiba Inu marketâs momentum has favored the bulls for several days. From October 12 to October 16, buyers dominated the market, driving the assetâs price to recover. The surge in buying activity on October 16 contributed to a 1.92% gain, with the token closing above $0.000018.
The assetâs recovery began after the token hit a low of $0.00001605 on October 10. Bulls quickly stepped in to support the price, taking advantage of an ascending trendline that has been in place since September. Despite the volatility, the asset maintained a higher low pattern, indicating that bullish momentum is building.
October Sees Positive Surge for Token
October was initially a volatile month for the Shiba Inu, but a recent recovery has turned the market around in a positive direction. The token has gained 36.98% so far this month. Currently, the token is trading at $0.00001913 with 2.08% in the last 24 hours after initially experiencing a 9% drop in the first three days of October.
For the bulls to maintain control, they need to defend the $0.00001719 pivot level, a key support point for the token. Failure to hold this level could result in a bearish takeover. On the upside, the next key resistance levels are located at $0.00002077, $0.00002299, and $0.00002657.
IntoTheBlock's Global In/Out of the Money (GIOM) indicator shows that Shiba Inu may face the strongest resistance in the price range of $0.000024 to $0.000030. Within this range, approximately 145,780 addresses hold 48.58 trillion SHIB tokens. Breaking through this resistance level would require significant buying volume, which could help sustain the current bullish trend.
The asset has shown signs of recovery in October, with buyers taking control of the market. While there are still challenges, especially at key resistance levels, the recent surge in buying volume and the overall positive trend suggest that the token could continue to rise in the coming weeks.