Shiba Inu (SHIB) Sending Addresses vs. Receiving Addresses | Source: GlassnodeBy adding up the daily number of recipient wallets, the Receiving Addresses metric gives an estimate of the number of unique buyers purchasing the underlying token. Conversely, the Sending Addresses metric is taken as an estimate of the number of existing holders offloading, selling or transferring out their tokens.
Logically, when the number of buyers (i.e. Receiving Addresses) exceeds the number of sellers (Sending Addresses) for a prolonged period, it signifies a dominant buying momentum. Hence, the number of Shiba Inu buyers exceeding sellers in each of the last 35 days implies that the bullish buyers now dominate the market.
This metric is likely to accelerate the on-going SHIB price rally for two reasons.
- Firstly, as expected of a market where buyers are higher prospective sellers, the bullish pressure has already sent the SHIB token price into a 30% upswing between October 9 and November 10.
- Furthermore, in affirmation, the chart clear illustrates how SHIB price has often increased exponentially whenever the Receiving Addresses (blue trend-line) surpasses Sending Addresses (red trend-line) over an extended period of time, and vice-versa.
Hence, if SHIB buyers continue to outnumber the sellers, this historical pattern will likely reoccur and trigger another SHIB price leg-up in the days ahead.