Is it time to be bullish on Shiba Inu again?

Lavina Daryanani
Shiba Inu Bull
Source: Unsplash

Meme tokens are known for fetching their HODLers with astronomical returns within short spans of time. Shiba Inu, the market’s second-largest meme-coin, has time and again delivered and stoop up to expectations.

The debate surrounding whether or not meme-coins make good investment options is evergreen and inconclusive. Usually, market participants who do not advocate coins from this category either never trade them or enter, book profits, and exit. On the other hand, other ‘loyal’ community HODLers stay within the ecosystem, come what may.

Shiba Inu: current market dynamics

To a fair extent, it can be claimed that the Shiba Inu profit-booking season has likely concluded. Swing traders have mostly been filtered and staunch HODLers currently compose of the majority.

To reassure the aforementioned affirmation, let us peek into the profitability numbers. The green patch, representative of the profitable addresses, on the chart attached below witnessed a steep decline during the November-December period. However now, it has sort of flattened.

Thus, to a fair extent it becomes clear that HODLers are clinging onto their HODLings and haven’t exited the SHIB market lately, despite the monotonous price trend. By and large, this is a good sign for the coin.

Source: IntoTheBlock

The ‘power’ of whale buying

Old HODLers staying back within the ecosystem is a positive development, and so is new participants entering the market.

WhaleStats’ recent tweet highlighted that prominent ETH whale “Gimli” bought 110,000,000,000 SHIB worth approximately $3,624,500 a few hours back. Here it should be noted that transaction of similar volumes in the past have triggered SHIB’s rally.

In the September-October period right before Shiba Inu’s massive uptrend, it was noted that a particular whale had bought over 6.17 trillion SHIB tokens. In fact, the same whale ended up purchasing another 276 billion right after in succession in three distinctive transactions.

So, expecting SHIB to react positively to today’s development wouldn’t be merely speculative, but is coherent. After all, the future is merely the refined version of the past, right?

Other X-factors

At the time of writing, the sentiment was gradually seen flipping towards the bulls. In fact, ITB’s data highlighted that the bull:bear ratio has been more than 1 over the past day – implying that the former category of market participants have started asserting command in the market.

Interestingly, the pendulum of the trades per side metric was also seen oscillating towards buy than sell at the time of writing. In the past one hour alone, the buy-sell difference reflected a positive value of 80 billion tokens.

Source: IntoTheBlock

So, if buying spree continues, that SHIB’s price-rise season would be almost inevitable. In fact, as highlighted in a recent article, the odds of this meme-coin surging, amidst its current bearish trail, remains to be quite a possibility.

In all, SHIB’s short-term prospects seem to be quite appealing at the moment.