Shiba Inu saw significant market activity on October 16, as bullish traders purchased nearly 3 trillion SHIB tokens, helping the cryptocurrency recover and close the day with gains. On-chain data from IntoTheBlock reveals that bulls acquired 2.95 trillion SHIB tokens. The purchase, valued at $53 million, came at an average price of $0.00008 per token.
This large acquisition represents approximately 0.5% of the asset’s circulating supply, signaling a notable increase in demand. Historically, high buy volumes like this often suggest growing interest from investors, which can fuel further bullish momentum in the market.
Interestingly, the data also shows an increase in sales volume on the same day. Bears, or sellers of up to 1% of the daily volume, sold 2.86 trillion SHIB, valued at $51.4 million.
Despite the near-equal buy and sell volume, the token experienced an excess demand of 81.41 billion tokens on October 16. This built on the previous day’s bullish trend, which saw an excess demand of 201 billion tokens.
Bullish Momentum Continues as Token Rebounds
Shiba Inu’s market momentum has favored the bulls for several days. Between October 12 and October 16, buyers dominated the market, driving a recovery in the asset’s price. The increased buying activity on October 16 contributed to the gain of 1.92%, with the token closing above $0.000018.
The asset’s recovery began after the token hit a low of $0.00001605 on October 10. Bulls quickly stepped in to support the price, capitalizing on an ascending trend line that has been in place since September. Despite fluctuations, the asset has maintained a pattern of higher lows, suggesting growing bullish momentum.
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October Sees Positive Gains for the Token
October was initially a volatile month for Shiba Inu, but the recent rebound has flipped the market positive. The token has gained 36.98% so far this month. Currently, the token is trading at $0.00001913 with 2.08% in the last 24 hours after initially experiencing a 9% decline in the first three days of October.
For bulls to maintain control, they must defend the $0.00001719 pivot level, a crucial support point for the token. A failure to hold this level could lead to bearish momentum taking over. On the upside, the next key resistance levels lie at $0.00002077, $0.00002299, and $0.00002657.
IntoTheBlock’s Global In/Out of the Money (GIOM) metric shows that Shiba Inu may face its strongest resistance between the $0.000024 and $0.000030 price range. In this range, approximately 145,780 addresses hold 48.58 trillion SHIB tokens. Overcoming this resistance will require significant buy volume, which could help sustain the current bullish trend.
The asset has shown signs of recovery in October, with bulls taking control of the market. While challenges remain, particularly at key resistance levels, the recent surge in buy volume and the overall positive trend suggest that the token may continue to gain in the coming weeks.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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