Shiba Inu [SHIB] witnessed a remarkable 360% increase in significant transactions in the previous week, drawing attention from investors. This surge in whale activity has elevated SHIB to one of the top cryptocurrencies with a rising investment appeal.
As of the latest update, SHIB was priced at $0.00001833, depicting a marginal 0.56% decrease. Despite this slight decline, traders have not been deterred. Hence, the query arises: Can SHIB sustain its current momentum and surpass its resistance levels?
SHIB on-chain indicators: Optimistic stance with some reservations
Diverse on-chain indicators provide a varied perspective, yet the overall outlook remains positive. Firstly, the net network growth exhibits a minor 0.27% bearish downturn, indicating a slower expansion in new participants.
Nevertheless, the “In the Money” metric registers at 1.75%, signifying that a segment of coin holders is presently in profit, serving as a favorable short-term signal. Furthermore, the concentration remains steady at 0.01%, suggesting no significant alterations in SHIB’s distribution.
Crucially, there has been a surge of 12.94% in large transactions, illustrating the continued dominance of whales in the meme coin’s market operations. Therefore, the sustained interest from whales could propel SHIB’s value further upward.
Diminishing exchange reserves: Easing selling pressures in the future?
An assessment of the exchange reserve data discloses a 0.41% decline over the past week, indicating a reduction in selling pressure. This descent implies that a smaller quantity of tokens is being transferred to exchanges for selling purposes.
Consequently, diminished sell-offs typically point towards increased investment accumulation, particularly by the whales fueling the 360% surge in transactions. Hence, the reduced exchange reserves harmonize well with SHIB’s escalated whale activity and could bolster future price appreciation.
SHIB funding rates: Are traders anticipating further profits?
The OI-weighted funding rate for SHIB stands at 0.0097% as of October 1, 2024, showcasing a bullish outlook among traders. This positive funding rate indicates an inclination for more traders to assume long positions, anticipating a rise in its value.
Therefore, this trend complements the whale activity and decreasing exchange reserves, reinforcing the probability of sustained growth for the meme coin.
SHIB seems set to prolong its upward trajectory, displaying significant potential for future expansion. The robust whale participation, alongside reduced selling pressures and positive trader sentiment, sets the stage for a favorable price environment.
Nevertheless, traders should stay mindful of potential hurdles like sluggish network growth. Nonetheless, the overall forecast for SHIB remains upbeat.