As Volatility Rises, HODLers Enter and Traders Exit
Volatility has truly acted as a double-edged sword, and crypto asset prices have fluctuated significantly over the past couple of days. In fact, there has been no decisive uptrend or downtrend confirmation, and the trends on the charts of the lower and upper time frames contradict each other.
During these uncertain times, traders usually flock to the market in droves to take advantage of price movements. However, when it comes to Shiba Inu, that hasn’t necessarily been the case.
As shown below, the gap between the curves of the short-term and long-term participants has closed. According to ITB data, the number of HODLers [1-year +] rose 6.20% over the past month. On the contrary, the number of cruiser addresses [1-12 months] fell 0.26%, while business addresses [< 1 month] fell 11.26%.
With the addition of staunch HODLers into the ecosystem and the unconventional exit of traders, it can be said that SHIB ownership has become more refined lately.
Does Shiba Inu have a positional advantage?
Over the past week, Shiba Inu have lost the most value compared to their other counterparts in the same boat. While DOGE, ELON and BabyDoge were down 8% to 14%, SHIB was down around 16% in value.
This means that if the market sees a concrete turnaround in the future, Shiba Inu may rise the most. In fact, lately, buying pressure was seen steaming up Tuesday at press time. In the last hour alone, an additional 18.72 billion SHIB tokens were bought than sold. In fact, even on the 12-hour window, the pendulum was tilted towards bulls, with the bid-ask trade difference standing at +70.76 billion SHIB.
However, it should not be forgotten that Shiba Inu shares a positive correlation of 0.81 with Bitcoin and 0.84 with Ethereum. This means that ultimately the larger directional bias will continue to take the lead.