Rising Shiba Inu: Buying pressure is rising, is a

Buying pressure on the Shiba Inu [SHIB] has increased significantly over the past few days. Whenever buying pressure increases, it signals a bull rally.

So, to understand whether investors should expect a bull rally, AMBCrypto took a closer look at the Shiba Inu ecosystem.

Investors are buying Shiba Inu dogs

Popular cryptocurrency analyst Ali recently noted that buying activity in SHIB is increasing. Notably, more than 8 trillion SHIB have been massively withdrawn from known cryptocurrency exchange wallets since November 2023.

AMBCrypto then looked at Santiment’s data. Our analysis shows that while the price of SHIB increased last month, its supply on exchanges dropped significantly.

At the same time, its supply outside exchanges has surged, proving that the meme coin is under heavy buying pressure.

SHIB remains the whales’ favorite coin. At press time, SHIB is the most traded token among the top 100 Ethereum [ETH] whales in the past 24 hours, according to Whalestats. Buying pressure doesn't just come from whales, however.

AMBCrypto’s observation of the Shiba Inu supply distribution also shows that in addition to whales, shrimp and fish investors are also actively buying SHIB. This is shown by the increasing number of addresses holding 0-100 tokens (green line).​

SHIB's Network Value Transacted (NVT) ratio reveals the possible reasons behind this high buying pressure. For the uninitiated, the NVT ratio describes the relationship between market capitalization and transfer volume.

Last month, when SHIB's price rose, its NVT ratio fell.

Historically, low NVT ratio values ​​have been periods conducive to accumulation, which may spark investors' interest in accumulating SHIB before its price surges.​

Is another bull market rally inevitable?

To check if high accumulation could translate into another bull rally, AMBCrypto looked at other indicators and market indicators.

SHIB’s weighted sentiment has spiked recently, reflecting investor confidence in the meme token. Their social volume also remains relatively high, meaning the Shiba Inu remains a popular topic of discussion.

Although the indicators look optimistic, SHIB’s MACD shows the possibility of a bearish crossover.

Additionally, its Relative Strength Index (RSI) and Money Flow Index (MFI) both edged lower and were close to their respective neutral marks at press time, which could signal slow action in the coming days.

As of this writing, SHIB has risen slightly in the past 24 hours and is trading at $0.00001085, with a market value of over $6.39 billion.

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