Since July 28, Shiba Inu (SHIB) has experienced an impressive upward trend, registering an extraordinary 51% increase in less than a month. The growth accelerated notably on August 3, pushing the token to reach a four-month peak of $0.0001052, thereby effectively eliminating a zero from its value.
This bullish momentum has caught the eye of investors, resulting in a rise in trading activity and a heightened demand for the SHIB token.
Investors Resist Selling Despite Increase in Volume
As reported by Santiment, a well-known cryptocurrency analytics platform, the recent surge in Shiba Inu’s price coincides with a dramatic increase in trading volume. The volume reached an impressive $895.84 million, reaching its highest point since February 6, according to a recent tweet by the platform.
The dramatic increase in trading volume has been a major contributor to the recent bullish movement, as more investors enter the market to take advantage of the rising trend. The expected launch of Shibarium this month has also added to the mounting enthusiasm, intensifying the growing interest in the token.
According to recent data, the amount of SHIB held on exchanges has notably decreased to 8.29%, marking the lowest level since April 2021. This decrease in supply on exchanges suggests that long-term holders are displaying strong confidence in the token and moving their assets to self-custodial wallets. This trend of increasing withdrawals from exchanges was highlighted by a news outlet earlier this month as investors seek greater control over their holdings.
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Remarkably, an August 1 report showed that investors pulled a substantial 3 trillion SHIB, equivalent to $28 million, from exchanges in July. This suggests a strategy to retain the tokens for a longer term, fueling the current uptrend.
According to Santiment, several signs point to the potential continuation of this upward trend. The substantial trading volume is a significant factor propelling the recent price increase. Given the robust volume backing, Santiment predicts that the momentum will push Shiba Inu’s price even higher, drawing further attention.
Shiba Inu Price Outlook
As of the latest update, Shiba Inu (SHIB) has encountered resistance to its recent rally. Over the past two days, the token has experienced a 7.25% decline from its gains, causing it to fall below the psychologically significant $0.00001 level. Despite this drop, SHIB remains above $0.000009, still retaining a notable 24.31% increase in value over the past month.
As of press time, Shiba Inu is trading at $0.00000911. Given the inherent volatility of cryptocurrencies, market experts advise exercising caution. Potential investors should be vigilant, conduct thorough research, and be aware of the risks involved before entering the market.