Despite the 11.6% drop to $0.00002417 amidst the slump of the broader cryptocurrency market, Shiba Inu (SHIB) is showing signs of resilience. Analyst Maximilian has pointed out key factors propelling SHIB to the $0.000031 mark.
Increased Trading Volume and Supportive Data
There is a remarkable surge in the trading volume too. SHIB’s trading volume has gone up to 164%, that is, $1.2 billion in 24 hours, marking 8.41% of its market cap. Additionally, there is a 201% in SHIB’s derivatives volume which is $369.97 million at the moment. This has occurred in spite of the downfall in open interest to $66 million.
Moreover, Shiba Inu’s investor confidence has remained strong. Over 12,000 addresses are holding at least 1 billion SHIB tokens! Data from IntoTheBlock reveal that 73% of SHIB investors have also held their tokens for more than a year, indicating a long-term commitment irrespective of short-term market fluctuations.
Also read: Should You Invest in Shiba Inu Coin? Top 4 Bullish Factors for SHIB Price
Distribution and Holding Patterns
The majority of addresses hold somewhere between 1 billion and 10 billion SHIB and a smaller number of addresses (around 51) hold between 1 trillion and 100 trillion SHIB tokens. These wallets that are larger, holding billions in cumulative balances, clearly highlight a confidence among major SHIB holders.
Technical Indicators and Future Outlook
From a technical point of view, SHIB has been struggling to reclaim the price level of $0.000028, currently trading key moving averages such as the 50-day EMA and the 200-day EMA. The indicators like these along with a shift towards methods of self-custody are reducing immediate selling pressure. This suggests a potential for a bullish rally.
The advancements in SHIB’s layer-2 scaling solution, which is Shibarium, also plays a major role in its potential growth. Shibarium is witnessing increased activity and the burning rate of SHIB tokens are surging. This shows that the community’s effort to make SHIB tokens is becoming scarcer over time.
