Despite optimistic developments, Shiba Inu’s interest in whales declines! Will SHIB prices be affected?
With Bitcoin falling significantly, the meme coin sector remains under bearish pressure and is at risk of falling below the $40,000 level. In this situation, the price of Shiba Inu (SHIB) faced low open interest and was stuck in a downward bullish trend. Despite positive factors such as encouraging SHIB burn statistics and continuous network improvements, there is a noticeable reluctance among major investors known as ‘whales’ to raise more meme coins. This hesitation, along with the current low market volatility, is complicating efforts to move SHIB out of fear territory.
Shiba Inu’s interest in whales continues to decline
Shiba Inu is showing notable bullish developments within the network as recent on-chain analysis indicates a possible path for the meme coin to achieve its expected $0.00001 valuation. This analysis is based on SHIB liquidity distribution at specific price ranges highlighted through insights from IntoTheBlock.
Current data shows an accumulation of approximately 39 trillion SHIB tokens, worth approximately $0.000009, distributed across 87,000 addresses. Notably, these holdings are currently at breakeven for their owners, indicating a significant level of support within the Shiba Inu investor community.
Nonetheless, there is the obstacle of a concentrated concentration of 47 trillion Shiba Inu tokens, sitting at a slightly higher price point of exactly $0.00001 per SHIB. This accumulation is having a negative impact as it currently causes losses for 100K holders. For SHIB to successfully rise above the desired $0.00001, it will need to deal with this significant trading volume, with the risk of a sudden exit.
There has also been a noticeable decline in whale interest in SHIB prices, as evidenced by a decline in the number of large trades over the past week. After peaking at 81 transactions, this metric has decreased significantly and now stands at just 10 transactions.
What’s next for SHIB pricing?
Shiba Inu has remained below its 20-day exponential moving average (EMA) price of $0.00000935 in recent days. But despite this, the bears were not successful in driving prices down as buying pressure increased near the bear market. As of writing, the SHIB price is trading at $0.00000897, down more than 2.7% from yesterday’s exchange rate.
The falling 20-day EMA along with the Relative Strength Index (RSI) heading into oversold territory suggests that sellers currently have the upper hand. If the price of Shiba Inu fails to rise from the current level or falls below the accumulation level of $0.0000082, the bears may once again try to send SHIB price towards $0.0000076.
On the other hand, a break above the 20-day EMA means the bears are losing control. In this scenario, buyers could take the opportunity to drive the price towards the descending resistance level of $0.0000097. A breakout could force the price to consolidate within the resistance area of $0.000011-$0.000012.