Shiba Inu (SHIB) has made headlines by displaying an impressive 485% dominance on the buying side, thanks to the Bid-Ask Volume Imbalance.
This fancy-sounding metric basically measures the difference between how much people want to buy (bids) and how much they want to sell (asks) in the order book.
When you see a 485% imbalance, it means there’s way more interest in buying SHIB than selling it. But before we get carried away, let’s break this down.
First things first, the Bid-Ask Volume Imbalance can be a bit like a rollercoaster – it goes up and down pretty quickly. So, even though a 485% favoritism towards the buyers sounds fantastic, it’s super important to not go all-in based solely on this number.
Why, you ask? Well, a sky-high imbalance can happen for all sorts of reasons. It might be because people are feeling super positive about SHIB, or it could even be due to some sneaky market maneuvers. That’s why it’s crucial not to bet the farm on this single metric.
However, this imbalance does tell us something interesting. It means that at a particular point in time, folks were really keen to scoop up some SHIB at its current price.
This could hint that investors see value in SHIB at this level, which might set the stage for a price turnaround.
But here’s the deal – don’t rely solely on this imbalance to make your investment decisions. To get a fuller picture of SHIB’s health, it’s wise to look at other factors.
Metrics like network activity, what big wallets are up to, and how funds are moving around can give you a more complete view of where SHIB might be headed.