The majority of Shiba Inu investors remained confused about the crypto price trajectory over the last few weeks. While crypto has seen a period of stagnation over the past couple of weeks, recent on-chain data shows the outlook maybe he seems optimistic again, especially since sales have slowed considerably this week. At the same time, the Shiba Inu is now taking a major step forward in terms of number of addresses, which could result in an increase in the number of keepers.
Shiba Inu sells pressure drops
The Shiba Inu price can easily fluctuate under the selling and buying pressure of investors. However, recent on-chain data indicates that selling pressure is currently decreasing, which could manifest in SHIB price in the coming week. Particularly, In TheBlock The history of active addresses by profitability shows that the annual average is now moving towards at-the-money wallet addresses.
Interestingly, this cohort of traders now represents almost 74.6%, meaning they contribute to the majority of buying and selling action. However, their “money situation” does not provide a clear direction for their actions, as they could either sell or increase their holdings at the current price.
On the other hand, this metric indicates better action among the active portion of “in-the-money” addresses. It is interesting to note that these “in the money” addresses have now seen their average activity since the start of the year fall below 18%. This cohort of traders, who would normally sell after making a profit on their holdings, failed to complete a tangible number of trades. Interestingly, this indicates that they might choose to hold on to their shares now in order to increase their unrealized profits.
Likewise, on-chain data shows that a substantial amount of SHIB is slipping away from short-term holders, contributing to a decline in selling pressure. Approximately 4% of the total circulating SHIB supply has shifted from short-term holders to medium-term holders over the past week. Medium-term holders hold their assets for more than a month to a year, unlike short-term holders, who are known to hold their assets for less than a month before selling them.
Source: IntoTheBlock
What’s next for SHIB?
With selling pressure easing and a shift to longer holding periods, SHIB is poised for a reversal and continued bullish momentum. At the time of writing, SHIB is trading at $0.00002766, by 1.1% in the last 24 hours and up 4.65% over a longer 7-day period.
Shiba Inu recently reached a milestone of 4 million addresses, which could mean a increased activity is on the horizon. A surge of activity could see SHIB repeat an uptrend from the 2021 bull run. According to Crypto analyst Bunchhiengif history were to repeat itself, a repeat of this pattern would see SHIB rising to $0.0001.
SHIB price at $0.000027 | Source: SHIBUSDT on Tradingview.com
Featured image from Watcher Guru, chart from Tradingview.com
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