Shiba Inu [SHIB] has experienced a 360% spike in large transactions over the past week, attracting the attention of investors. This whale activity has put SHIB on the list of top cryptocurrencies with increasing investment interest.
Currently, SHIB is trading at $0.00001833, down slightly by 0.56%. However, this slight decline has not discouraged traders. So the question is: Can SHIB maintain this bullish momentum and break through the resistance levels?
SHIB On-Chain Metrics: Positive Outlook Despite Some Concerns
Several key on-chain metrics have provided a mixed picture, but the overall outlook remains promising. First, net network growth showed a slight decline of 0.27%, signaling slower growth of new participants.
However, the “In Profit” index stands at 1.75%, meaning that a portion of Coin Holders are currently in profit, a short-term bullish indicator. Additionally, the concentration remains neutral at 0.01%, meaning there has been no significant change in the distribution of SHIB.
Most importantly, large transactions increased by 12.94%, indicating that whales continue to play a major role in the market activity of this Meme Coin coin. Therefore, whale interest could continue to push the price of SHIB higher.
Exchange Reserve Decline: Less Selling Pressure?
According to the exchange reserve analysis, the data shows a 0.41% decrease over the past week, signaling a decrease in selling pressure. This decline indicates that fewer tokens are being transferred to exchanges for sale.
Therefore, less sell-offs usually mean more investment accumulation, especially from whales who drove the 360% increase in trading. As a result, the decrease in exchange reserves matches the increased whale activity and could further support the price increase of SHIB.
SHIB Funding Rate: Are Traders Betting on Bulls?
The OI-weighted funding rate for SHIB was 0.0097% as of October 1, 2024, indicating bullish sentiment among traders. This positive funding rate suggests that many traders are betting on its price increase.
So this trend is consistent with whale activity and a decrease in exchange reserves, increasing the likelihood of further price appreciation for this Meme Coin coin.
SHIB is likely to continue its upward momentum, showing great potential for further growth. Strong whale activity, coupled with reduced selling pressure and positive trader sentiment, creates a favorable environment for its price. However, traders should be aware of potential challenges such as slower network growth. Nevertheless, the overall outlook for SHIB remains positive.
