Shiba Inu (SHIB) has made headlines once again, witnessing an extraordinary surge in market activity. On October 16, bullish traders swooped in to purchase a staggering 2.95 trillion SHIB tokens, valued at approximately $53 million. This massive acquisition has not only marked a significant moment for the cryptocurrency but also underscores a growing interest among investors, pointing toward potential bullish momentum for the token.
The Numbers Behind the Surge
According to on-chain data from IntoTheBlock, the acquisition of these tokens occurred at an average price of $0.00008 per token. This purchase represents around 0.5% of SHIB’s circulating supply, indicating a notable uptick in demand. In the realm of cryptocurrency, such high buy volumes can be indicative of increasing investor interest, often leading to further upward price movements.
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Interestingly, the day also saw a significant amount of selling activity. Bears offloaded approximately 2.86 trillion SHIB, worth about $51.4 million, suggesting a competitive market atmosphere where both buyers and sellers were active. Despite the near parity between buy and sell volumes, there was still an excess demand of 81.41 billion tokens on October 16, building on the previous day’s bullish momentum that saw a surplus of 201 billion tokens.
Bullish Momentum Builds
The recent market trend for Shiba Inu has favored the bulls, with buyers dominating between October 12 and October 16. The heightened buying activity during this period contributed to a recovery in the asset’s price, which gained 1.92% to close above $0.000018. This upward trend follows a low of $0.00001605 reached on October 10, when buyers stepped in to support the price, taking advantage of an ascending trend line that has been in place since September.
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Despite fluctuations, Shiba Inu has maintained a pattern of higher lows, indicating a strengthening bullish sentiment. October, which started as a volatile month for the cryptocurrency, has now transformed into a positive period, with SHIB gaining an impressive 36.98% so far. Currently, it is trading at $0.00001913, having rebounded by 2.08% in the last 24 hours after a 9% decline in the first few days of the month.
Key Support and Resistance Levels
For the bullish trend to continue, Shiba Inu must hold the crucial support level at $0.00001719. If this level fails to hold, bearish momentum could take over, leading to potential declines. On the upside, key resistance levels to watch include $0.00002077, $0.00002299, and $0.00002657.
IntoTheBlock’s Global In/Out of the Money (GIOM) metric highlights that Shiba Inu may face its strongest resistance in the $0.000024 to $0.000030 price range, where about 145,780 addresses hold 48.58 trillion SHIB tokens. Overcoming this resistance will require substantial buy volume, which could sustain the ongoing bullish trend.
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Looking Ahead
Shiba Inu has shown signs of recovery in October, with bulls taking control of the market dynamics. While there are challenges ahead, particularly at key resistance levels, the recent surge in buy volume and the overall positive trend suggest that SHIB may continue to gain momentum in the coming weeks. For investors and traders alike, monitoring these developments will be crucial as Shiba Inu navigates its path forward in the ever-evolving cryptocurrency landscape.
In summary, Shiba Inu’s recent market activity, characterized by massive purchases and a notable increase in demand, indicates a potential shift toward bullish sentiment. As the community watches closely, SHIB enthusiasts remain hopeful for sustained growth and stability in the weeks ahead.
