The prolonged downtrend across the general crypto markets hasnโt spared Shiba Inu (SHIB), as the mainstream dog-embossed crypto tanked by 22.8% over the past 30 days. While trading volumes stay considerably low in comparison to rival memecoins, SHIB could be put back on track by wholesale crypto investors, popularly known as crypto whales.
Are Shiba Inu Whales Really Exiting Right Now?
As of late, the heavyweight Shiba Inu crypto (SHIB) holders displayed conflicted signs in sentiment. While draining the crypto exchange reserves to a record low of 96.6T this year, coming down from nearly 200 trillion SHIB tokens in April, 2022. Considered a sign of long-term investment initiatives by crypto whales, there also is a darker side to this drought in Shiba Inuโs exchange reserve.
Namely, the 104 trillion reserve slice for the second largest dog-themed crypto in three years contributed to a sell-off, as revealed in a recent study by Glassnode. To be precise, the on-chain data since early 2022 displays a SHIB reduction trend among large investors, owning at least a $1M worth of SHIB on their crypto wallets.
One year later, the early SHIB holder balance took a drastic downswing, looking nearly flat by July, 2023, originally collectively owning 20% of all SHIB supply. โThis mass exit triggered sharp corrections, highlighting how concentrated early ownership can amplify volatilityโ, explained the blockchain intelligence platform on X, previously known as Twitter.
And so, the scarce crypto exchange reserve isnโt necessarily securing any victories for Shiba Inu (SHIB) just yet. Moreover, other technical factors like the Bollinger Bands (BOLL) showcased consolidation, narrowing in the 4-hour charts, as Shiba Inuโs price dropped 3.5%.
Depicted in red in the graphic above, the upper band of this crypto technical pattern marked $0.00001338 as the next short-term goal for SHIBโs price. In contrast, the middle band, colored in blue and considered the more realistic one, equipped Shiba Inuโs with a value of $0.00001292, still far below previously-claimed support territory at $0.000014.
On The Flipside
- Aside from the technical Shiba Inu price implications and currently fearful overall crypto market sentiment, Shiba Inuโs loyal community plays a big part in providing utility for the memecoin.
- The SHIB Army is growing to nearly 4 million followers on X, as well as massive Discord & Reddit communities with token burning, developing & social initiatives across the globe.
Why This Matters
A mutual sentiment shared by the largest crypto holders, whether sharks or whales, affects the coinโs development, but also serves favorable entry points for crypto traders.
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