Shiba Inu ‘Buying Pressure’ Reaches New Highs

Vinod Dsouza
Shiba Inu Rocket
Source: Pixabay

Shiba Inu is on a downward spiral this week but that isn’t stopping investors from accumulating the token. Trading activity for SHIB has reached new highs on Coinbase as 77% of investors have placed it on ‘buy’ while only 23% have kept it on ‘sell’. SHIB’s buying pressure failed to cross 70% since March and had a breakthrough today reaching 77% during the dip. The last time SHIB’s trading volume increased to 90% was in September last year, just days before it spiked 1,000% in October.

Read More: Shiba Inu Suggests Possibility of a Near-term Price Movement

Also, the typical ‘hold time’ for Shiba Inu has increased with investors holding on to the token for more than 4 months. The typical hold time for SHIB at present is 133 days.

Source: Coinbase

Buying The Dips on Shiba Inu

Despite its price heading south, top Ethereum whales are splurging on SHIB. Just recently, ‘BlueWhale0073’ purchased 142 billion SHIB tokens worth a staggering $1.5 million. Whales are making good use of the dips and adding bag loads of tokens to their respective portfolios.

However, SHIB is yet to see a dramatic price increase this year and is either mostly trading sideways or dipping. The token is unable to find a breakthrough and is now nearly down to its weekly lows. However, is it advised to not blindly buy the dips on SHIB as the token might face further corrections.

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Financial analyst John Squire, the partner at Ojamu, an AI & Blockchain-powered platform, revealed exclusively to Watcher Guru that Bitcoin might plummet further after the upcoming FOMC meeting. “Bitcoin is going down in the next few months and the crypto could drop below $27,000 by the end of this month,” he said.

Shiba Inu moves in tandem with Bitcoin’s performance and if BTC heads south, SHIB sheds most of its gains. The market is taking its own time to recover and a quick bounce will not be on the cards. Therefore, it is advised to remain cautious in the next few weeks before going all-in.

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At press time, Shiba Inu was trading at $0.00001041 and is down 5.6% in the 24-hours day trade. The token is down 87.9% from its all-time high of $0.00008616, which it reached in October last year.