As a seasoned crypto investor with a knack for spotting trends and a portfolio that has weathered numerous market storms, I find myself intrigued by the recent developments surrounding Shiba Inu (SHIB). The price drop, while disheartening, is not unfamiliar territory for me. However, the surge in whale activity, as suggested by Santiment data, piques my interest.
The price of Shiba Inu coin decreased along with the broader market, losing approximately 6.5% of its worth. Yet, there was an increase in whale activity that reached a monthly peak, implying that big investors might be purchasing more coins at reduced prices. This spike in whale activity aligns with the Shiba Inu community’s attempts to strengthen the ecosystem by planning to establish a Decentralized Autonomous Organization (DAO). Concurrently, small traders seized the moment to profit by selling short on the asset. Will the price of SHIB be able to weather this market turbulence?
Whale Accumulation May Spur Shiba Inu Price Rise
Over the past day, there’s been an uptick in Shiba Inu whale transactions, coinciding with a price decrease. This could indicate that they might have taken advantage of lower prices to increase their holdings. According to Santiment data, the activity of these whales holding $100,000 worth or more of SHIB has significantly risen, marking the highest level since July 18.
IntoTheBlock data also shows that large holdersβ netflow was positive between August 26 and 27, suggesting that the spike in whale activity detected during the price crash could have been caused by large holders adding more SHIB tokens.
This heightened whale activity takes place against the backdrop of plans for Shiba Inu decentralized autonomous organization (DAO), as announced by SHIB Head of Marketing, βLucie.β
β πππππ (@LucieSHIB) August 24, 2024
As stated by “Lucie,” the main intention behind the creation of the DAO is to enable owners of the meme token to participate in deciding future ventures and influence the course that the project will take in the future.
Will Dropping Popularity Affect Shiba Inu Price?
Despite the possibility of a 6% further decrease in SHIB‘s price due to the recent market downturn triggered by Bitcoin, large investors (whales) are actively purchasing additional tokens.
Firstly, let me mention that recent data from Santiment indicates a decline in the popularity of Shiba Inu, with its social dominance reaching a one-year low at 0.268%.
Furthermore, there’s currently a higher level of pessimism than optimism about Shiba Inu within the market, potentially causing its price decrease. The decrease in interest could also be attributed to a fall in the Shiba Inu token burning rate.
As reported by Shibburn, the number of Shiba Inu tokens (SHIB) being destroyed has significantly decreased, with only about 261,691 tokens being incinerated in the last 24 hours. This is a drastic reduction compared to the over 7 million SHIB burned just one day prior, representing approximately a 100% decrease.
This decline in the SHIB burn rate, a metric that indicates community engagement and token scarcity, may indicate diminishing enthusiasm among holders. Alternatively, Shiba Inu holders might suspect a price increase and choose not to sacrifice their tokens for burning.
All things considered, Shiba Inu continues to be a robust and promising project. The present dip in prices is a trend affecting the market as a whole, and much like on August 5th, the subsequent recovery could potentially be quite significant. If this scenario unfolds, Shiba Inu’s price may jump by approximately 35%, reaching around $0.00001740.
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2024-08-28 12:54