As an analyst with over two decades of experience in the cryptocurrency market, I’ve witnessed the rise and fall of numerous coins, from Bitcoin to lesser-known meme tokens like Shiba Inu. The recent data from IntoTheBlock revealing that Shiba Inu whales have been offloading their holdings is a development I find both intriguing and concerning.
According to data from market research platform IntoTheBlock, large investors (or “whales”) of Shiba Inu have been selling their coins over the past month. This trend might be attributed to multiple reasons, such as the underperformance of this meme coin in terms of price movement in recent weeks.
Shiba Inu Whales Reduce Their Holdings
According to data from IntoTheBock, large Shiba Inu investors (whales) have been selling off their holdings significantly over the past month. Notably, there has been a decline of more than 6% in the amount of SHIB held by investors with between $100,000 and $1 million. Furthermore, whales holding between $1 million and $10 million SHIB have decreased their holdings by over 3%, while those with over $10 million worth of Shiba Inu tokens have reduced their holdings by approximately 7%.
Over the past week, a growing pessimism among significant Shiba Inu investors seems to have emerged, as there’s been a significant decrease of over 670% in the movement of their tokens. This decline suggests they’re selling off their coins instead of buying more. Additionally, it’s important to note that the number of large transactions has decreased by nearly 5%.
The large investors (whales) have been selling off their Shiba Inu tokens due to its lackluster performance in the market. Over the last week and month, the second-largest meme coin has dropped by more than 7% and 14%, respectively. Although Bitcoin‘s decline may be partly responsible for this downtrend in Shiba Inu, it is noteworthy that the meme coin often fails to rebound even when Bitcoin recovers.
It’s thought that these whales might be trying to minimize their losses, given that Shiba Inu could potentially drop more. Data from IntoTheBlock indicates that a large number of SHIB‘s current holders purchased the meme coin when its price was above 0.00002, so it makes sense for these investors to implement risk management strategies due to how far the price has moved away from that level.
SHIB’s Adoption Has Stagnated
According to IntoTheBlock’s data, Shiba Inu’s user adoption has been stable but not growing for some time. This suggests that the coin isn’t attracting as many new investors as it once did, which could be a concern because these new investors typically bring fresh capital into the market and can spark price increases.
It appears Shiba Inu might be following a similar trend as Dogecoin, with its network activity and new address count remaining relatively stable for the past three months. One possible reason is that meme coin traders are currently favoring newer meme coins because they believe they have higher potential returns compared to Dogecoin or Shiba Inu.
According to crypto analyst Altcoin Sherpa, significant increases in the prices of meme coins like Dogecoin and Shiba Inu are expected to be limited during this bull market. These coins are typically best for large investors, or “whales,” who can afford to invest a substantial amount. This is why a large portion (73%) of Shiba Inu’s total supply is currently held by these whales.
Currently, as I’m typing this, Shiba Inu is being exchanged for approximately 0.00001412 USD, and it has increased by more than 6% within the past 24 hours, based on information from CoinMarketCap.
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2024-08-10 10:11