Gushiken Yona
Shiba Inu holders are showcasing their “diamond hands” as they maintain strong positions despite a trading lull. Meanwhile, bullish traders have mounted nearly $47 million in buy orders.
Recent data from data science company IntoTheBlock revealed that the majority of Shiba Inu (SHIB) holders maintained their positions over the past 12 months. This steadfastness, with 77% of addresses identified as long-term holders, provided a robust foundation against further price drops.
This “diamond hands” mentality suggested a solid support level for SHIB, with long-term holders showing confidence in the token’s potential. However, over the past three months, despite the strong base of committed holders, SHIB experienced a notable decline in trading activity.
In contrast to this holding pattern, bullish investors are signaling strong confidence in SHIB’s future. On-chain data from IntoTheBlock’s Exchange Order Books shows that as of Monday, buy orders for SHIB have surged to a staggering $48.6 million, reflecting a 0.3% increase.
This steady demand suggests buyers are actively seeking SHIB at prices below the current market values, far exceeding the remaining sell orders of less than 3.6 trillion SHIB. This excess demand, valued at approximately $44.5 million at current prices, reflects some selling pressure, but the overall demand still outweighs supply.
Moreover, the Market Depth Ratio (MDR) of 4.4%, peaking at 5.2%, indicates a positive price movement likely driven by the higher demand reflected in the buy orders. While the Depth of Market (DOM) is at 100%, highlighting a healthy level of liquidity. High liquidity typically leads to smoother price movements and less volatility, beneficial for both short-term traders and long-term investors.
This surge in buying activity comes amidst a noticeable decrease in overall trading volume. IntoTheBlock data reveals an 80.45% decrease in inflows and a 91.84% reduction in outflows over the past 90 days.
This significant reduction in trading activity could be attributed to broader market conditions or a temporary waning of interest in the token. With sellers seemingly exhausted and an influx of bullish sentiment, the market appears poised for a potential price appreciation phase as per bullish market watchers.
As of 8:11 a.m. ET on Monday, Shiba Inu (SHIB) was trading at $0.00001708, reflecting a modest 0.18% gain for the day. This minor uptick is part of a broader weekly trend, with SHIB prices up 1.96% over the past seven days. However, the token’s value has experienced a significant dip of 32.39% in the past 30 days, highlighting the volatile nature of the cryptocurrency market.
Despite the recent price fluctuations, trading activity for SHIB appears to be on the rise, with a 24-hour trading volume of $192,272,653, marking a substantial 49.70% increase compared to the previous day. This surge in trading volume could indicate renewed interest in the token, potentially fueled by recent developments such as the massive influx of buy orders and the ongoing token burn initiative.
According to the data from CoinMarketCap, SHIB’s current circulating supply stands at 589,270,913,907,394 tokens, with a market capitalization of $10,071,467,233, reflecting a 0.50% increase. These figures underscore the significant market presence of Shiba Inu, despite its recent price volatility.
Disclaimer: Yona has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice.
The Shib Daily is an official media and publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
