Shiba Inu (SHIB) price bulls fiercely defend the $0.000008 support level as the crypto market slipped into a consolidation phase this week.
On Nov 15, Global Boxing star Manny Pacquiao’s charity foundation confirmed a strategic, operational partnership with Shibarium, Shiba Inu’s L-2 Network.
Bullish on-chain data trends show that while SHIB continues to attract new demand, Long-term holders are selling less frequently.
Shiba Inu announced a major partnership with Global Boxing star Manny Pacquiao’s charity foundation on November 15. The on-chain analysis explores how this could incentivize bullish SHIB investors to drive the SHIB price rally forward.
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 shows that Shiba Inu has received a strong wave of market demand with 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 this wee..
The Glassnode chart below confirms 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 now extended their dominant streak to 40 consecutive days.
Shiba Inu (SHIB) Sending vs. Receiving Addresses – Source: GlassnodeThe Receiving Addresses metric gives an estimate of the number of unique buyers purchasing the underlying token by daily number of recipient wallets. On the flipside, the Sending Addresses metric represents the number of existing holders who are actively selling off or transferring out their tokens.
Logically, when the number of traders buying SHIB (i.e. Receiving Addresses) has consistently exceeded the number of sellers (Sending Addresses) during a price correction, it is an indication the bullish traders are doubling down in hopes of a quick recovery.
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.
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.
Shiba Inu (SHIB) Average Time Held | Source: IntoTheBlockCritical on-chain data culled from IntoTheBlock shows that the average age of SHIB tokens transferred has been on steep decline for months. As depicted below, the Average Holding Time of SHIB tokens sold on November 16 was 1 month.
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 signal’s growing investor confidence in the short-term price prospects and long-term viability of the Shiba Inu project.
The successful Shibarium Layer-2 Network launch, billed to increase scalability and 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.
Having defended the $0.000085 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 well 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 $0.000001. However, a decisive breakout from that resistance could see SHIB double its 2023 opening price to reclaim $0.00002.
Shiba Inu (SHIB) Price Prediction, November 17, 2023 | Source: TradingViewOn 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 $0.00008.
If that support territory holds firm, the second-largest memecoin by market capitalization will likely avoid a major bearish reversal.