The Shiba Inu (SHIB) price continues to hold the $0.000008 support level despite the choppy sentiment surrounding the crypto market this week. On-chain analysis explores how SHIB investors could react to Shiba Inu’s latest partnership deal.
The second biggest meme coin by market capitalization partnered with global Boxing star Manny Pacquiao’s charity foundation on November 15. Will it incentivize bullish SHIB investors to double down on their positions despite neutral price action?
Shiba Inu Market Demand Remains Strong Despite Sideways Price Action
Last week, Beincrypto reported how bullish traders stealthily seized control of the Shiba Inu market over the past month. This strong wave of market demand drove SHIB price to a 4-month peak of $0.00001 on November 11.
However, despite the 15% retracement from last week’s top, market demand for the SHIB token continues to mount. The Glassnode chart below reaffirms that the number of SHIB buyers (Receiving Addresses) still exceeds sellers (Sending Addresses) this week.
The latest reading on November 16 shows receiving addresses (2,430) exceeded sending addresses (1,922). Notably, the last time SHIB sellers outnumbered buyers was October 9.
This implies that the SHIB bulls have extended their dominant streak to 40 consecutive days.Shiba Inu (SHIB) Sending vs. Receiving Addresses – Source: Glassnode
The Receiving Addresses metric estimates the number of unique buyers purchasing the underlying token by daily number of recipient wallets. On the flip side, the Sending Addresses metric represents the number of existing holders who are actively selling off or transferring out their tokens.
Logically, it is a bullish signal when the number of traders buying SHIB (receiving addresses) consistently exceeds the number of sellers (sending addresses) during a price correction.
Evidently, this strong market demand has played a vital role as the bulls defended the $0.000008 this week. But more importantly, it signals that most of the current SHIB investors are looking to hold out for future gains rather than exit.
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Long-Term Investors are Choosing to Hold Despite Peak Prices
At $0.000008, Shiba Inu’s current price is higher than the monthly peaks recorded in October and September, respectively. But despite holding 13% year-to-date gains, SHIB long-term investors remain reluctant to sell at current prices.
Critical on-chain data culled from IntoTheBlock shows that the average age of SHIB tokens transferred has been on a steep decline for months. As depicted below, the Average Holding Time of SHIB tokens sold on November 16 was 1 month.Shiba Inu (SHIB) Average Time Held | Source: IntoTheBlock
The Average Time Held metric measures how much time recently-traded coins traded had been held unmoved before being transacted. A decrease in the average age of coins traded means that Long-term investors are selling less frequently.
A closer look at the chart illustrates that the November peak of 4 months is significantly lower than the peaks recorded in each of the last 5 months dating back to July. This signals growing investor confidence in the short-term price prospects and long-term viability of the Shiba Inu project.
The successful Shibarium Layer-2 Network re-launch, billed to increase scalability and accelerate SHIB Burn rate, is one of the major drivers that helped restore investor confidence in recent months.
This week’s partnership announcement with Manny Pacquiao’s charity foundation is another high-profile event that could further deepen the SHIB community commitment in the coming weeks. If this thesis holds true, Shiba Inu investors can anticipate another price breakout once the overall market sentiment flips bullish again.
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SHIB Price Prediction: Upward Trajectory Toward $0.00002?
Having defended the $0.0000085 territory, the dominant buying momentum and resilience shown by long-term investors could put SHIB price on an upward trajectory. The Parabolic SAR (Stop and Reverse) technical analysis indicator also supports the bullish Shiba Inu price prediction.
The Parabolic SAR identifies vital reversal points in an ongoing price trend. When it points below the current price of an asset, it indicates short-term bullish momentum and vice versa.
Currently, the SHIB Parabolic SAR indicator dots point toward $0.000008, which is below the current price of $0.000009. This alignment is a clear indication of an imminent price bounce.
If the bulls seize control as predicted, SHIB price will face initial resistance at the previous local high of $0.00001. However, a decisive breakout from that resistance could see SHIB double its 2023 opening price to reclaim $0.00002.Shiba Inu (SHIB) Price Prediction | Source: TradingView
On the downside, the bears could invalidate that prediction if they successfully force a downswing below $0.000007. However, the bulls will likely mount a major buy wall around the Parabolic SAR point at $0.000008.
If that support territory holds firm, the second-largest memecoin by market capitalization will likely avoid a major bearish reversal.
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The post Shiba Inu Lands Heavyweight Partnership – Is SHIB Price About to Double? appeared first on BeInCrypto.