Impact Of Shrinking Whale Holdings On Shiba Inu
According to data from Santiment, there has been a decline in holdings of Shiba Inu whales across various crypto exchanges since the end of May.
The on-chain data provider revealed that the total number of SHIB tokens held by whale investors stood at 168 trillion.
This is about 29% of the meme token’s circulating supply in the market, which stands at 589 trillion tokens.
New lows
Generally, when there is a decline in the amount of tokens held in these top wallets on crypto exchanges, it is considered a long-term bullish sign.
This is because it hints towards the possibility of a price increase. If the whales are not selling their holdings and moving them off exchanges, it is a sign that they are accumulating for the long-term.
Again, this is regarded as potentially bullish. But, the SHIB market trend seems to be the opposite. There has been a significant decline in the price of the meme token in the last couple of weeks.
Therefore, the fact that whale holdings on crypto exchanges are on a decline could mean that SHIB investors are cashing out. This could result in a further price drop.
At publishing time, the price of the SHIB token stood at $0.000021. Data from CoinMarketCap shows that there has been a 15% decline in the price of the SHIB token in a week.
The performance
A look at the daily chart of the Shiba Inu token shows that there is a rise in SHIB distribution amongst market participants.
For instance, a downward trend was recorded in the Money Flow Index (MFI) and the Relative Strength Index (RSI) of the meme coin.
The MFI was 26.34 and the RSI was 38.10, both of which are below their respective neutral lines. This indicates that there is significantly higher selling pressure in the SHIB market than buying activity.
Moreover, the Parabolic Stop and Reverse (SAR) indicator is also higher than its price. This highlights the potential trend direction of a token and its price reversals.
When it is above the price of an asset, the market is in a decline, which means the price of asset is falling and may continue to do so.
If the price of the second-largest token in the market continues to decline, it could drop below $0.00002 and even decline to $0.000018.
But, if buying momentum surges, it could drive up the price of the SHIB token to reach $0.0000024.
Transaction volume
The Shibarium blockchain has also seen its transaction volume increase massively in the past week. There was a 441% rise, as transactions climbed to 13,191 from 2,990 in a week.
The rise in transactions also pushed up the transaction fee. This could prove to be a good sign for the Shiba Inu community.
This is because more transactions translate to more burns. It reduces the overall supply of the Dogecoin rival and could potentially drive up its price.
The burn rate of the Shiba Inu token has also recorded a significant increase in the last week, but it has not had an impact on price as yet.
