Shiba Inu (SHIB) is a memecoin that has gained popularity in recent months, thanks to its loyal community and viral marketing. However, the price of SHIB has been in a downtrend since its all-time high of $0.0000388 on May 10, 2023. As of October 5, 2023, SHIB is trading at $0.00000721, down by more than 83% from its peak.
SHIB’S Metrics Show Some Promise of Improvement
But could this be the bottom for SHIB? According to analytics provided by IntoTheBlock, a blockchain analytics platform, SHIB bulls have shown remarkable dominance on the buying side, as measured by the Bid-Ask Volume Imbalance.
This metric compares the volume of buy orders (bids) and sell orders (asks) in the order book, and shows the difference between them as a percentage. A positive percentage indicates that there are more buy orders than sell orders, implying a higher buying pressure. A negative percentage indicates the opposite, implying a higher selling pressure.
According to IntoTheBlock, SHIB had a staggering 485% Bid-Ask Volume Imbalance on October 4, 2023, meaning that the volume of buy orders was 485% higher than the volume of sell orders. This suggests that SHIB investors were eager to buy the dip and accumulate more tokens at the current price level. This could also indicate that they see value in SHIB and expect a price reversal soon.
However, it is important to note that the Bid-Ask Volume Imbalance is a volatile metric that can change quickly. It does not guarantee that the price will follow the direction of the imbalance. It is also possible that the imbalance was caused by other factors, such as market sentiment or manipulation. Therefore, it is not advisable to rely solely on this metric for making investment decisions.
Instead, investors should consider other on-chain metrics and market indicators that provide a more comprehensive view of SHIB’s health and potential. For example, network activity, transactional activity on large wallets, and movement of funds are often more reliable indicators of investor behavior and market dynamics.
SHIB is a highly speculative asset that carries significant risks and rewards. Investors should always do their own research and be cautious before investing in any cryptocurrency.