Shiba Inu (SHIB) price delivered 18% gains this week as investors piled heavy on the memecoin market. On-chain analysis examines how long bulls remain in control.
Shiba Inu price, Dogecoin (DOGE), and PEPE delivered double-digit gains this week as the memecoin market resurgence intensified. Can SHIB flip DOGE as the top-performing large-cap memecoin with the bulls firmly in control?
Bulls Have Seized Control of the Market
Shiba Inu price performance this week has been attributed to the crypto market rally spreading toward the memecoin sector. Looking beyond the headlines, on-chain data has uncovered how the buyers gradually seized control of the SHIB market over the past month.
According to Glassnode, Shiba Inu recorded 2,732 Receiving Addresses on Friday, November 10, significantly exceeding the corresponding 1,945 Sending Addresses. But more importantly, a closer look shows that addresses buying SHIB have consistently surpassed the number of selling addresses in the last 35 days.
Shiba Inu (SHIB) Addresses. Source: Glassnode
The Receiving Addresses metric estimates the number of unique buyers purchasing the underlying asset by summing up the daily number of recipient wallets. Meanwhile, the Sending Addresses estimate the daily number of holders offloading, selling, or transferring their tokens.
When the number of buyers, Receiving Addresses, exceeds the number of sellers, Sending Addresses, over a prolonged period, as observed in the Shiba Inu chart above, it implies that the bulls now dominate the market. As expected of a market where buyers exceed prospective sellers, the underlying SHIB token price has experienced a 30% upswing between October 9 and November 10.
SHIB Price Prediction: Can the Rally Reach $0.00002?
Based on the on-chain data points analyzed above, buyers appear firmly in control of the Shiba Inu market. The SHIB price rally could accelerate toward the $0.00002 area if this trend persists.
The Global In/Out of the Money (GIOM), which groups the current SHIB holders according to their entry prices, also validates this prediction. It illustrates that the latest SHIB price upswing has sent 60% of current investors into profitable positions.
With their profits mounting, many investors are likely less inclined to sell. If the gap between buyers and sellers widens, $0.00002 could be the next target.
However, the GIOM data shows that the bulls must first scale the initial resistance at $0.000011. Here, 338,320 addresses had bought 242.3 trillion SHIB at the average price of $0.000011. Notably, August’s previous SHIB price breakout was rejected at $0.00001. Hence, many current Shiba Inu holders could see it as a strategic exit point.
However, if the buying pressure remains dominant, SHIB price may smash through the resistance and reclaim $0.00002.
Shiba Inu (SHIB) Price Prediction. Source: IntoTheBlock
On the downside, the bears could wrestle control of the market if the SHIB price reverses below $0.000006. The bulls will likely mount an initial support buy-wall at the $0.000008 area. At that zone, 50,280 addresses had bought 53.64 trillion at the maximum price of $0.00008.
