After the recent dip in the overall market, it appears that large holders, commonly referred to as whales, have intervened to offer their support. Not even meme-based cryptocurrencies are exempt from this trend, with one significant whale wallet accumulating a staggering 257.5 billion Shiba Inu [SHIB] coins.
Could this potentially mark the beginning of a new uptrend in prices or is it merely another instance of market manipulation?
The Shiba Inu Whale Phenomenon
The top ten exchange wallets collectively possess 130.47 trillion SHIB, with an additional 3 trillion coins added just this month.
Despite this significant accumulation, the meme coin has been facing challenges. It is currently trading 13% below its value at the beginning of the year and is approaching a crucial support level of $0.00001500, as of the latest data.
Since the launch of TRUMP, Shiba Inu has experienced a consistent downtrend, consistently hitting daily lows while maintaining a safe distance from being considered overbought based on the Relative Strength Index (RSI). The Chaikin Money Flow (CMF) indicator has also been signaling negative movements.
In an additional intriguing development, the top ten wallets have offloaded 30 trillion SHIB over the past ten days.
This notable disparity between supply and demand has caused SHIB to spiral downwards, resulting in a loss of $1.31 million in market capitalization over the course of January.
However, could this trend be reversing? At the time of this report, SHIB had registered a 6% increase in the previous 24 hours, reaching a price similar to when it witnessed a sharp rally during the election period, where it surged by 58% within a week.
Now, with large holders beginning to re-accumulate, is this potentially the commencement of a more substantial uptrend?
Possible Manipulative Actions
Following a two-month long persistent downtrend, Shiba Inu finds itself in an oversold position. The significant profits have been realized and seems to have been locked in, indicating a change in the cycle.
As the dust settles, there appears to be a prospect for future growth.
However, trading volume has remained stagnant at a modest $600 million, significantly lower compared to the explosive $7.6 billion recorded in December. Retail traders have not yet re-entered the market, suggesting that the recent price surge is primarily driven by large holders.
In the month of January alone, whale wallets have accumulated a staggering 40 trillion Shiba Inu coins. As the new month kicks off, these influential entities are positioned to continue accumulating, with the current holdings of 256 million coins potentially just the starting point.
Nonetheless, it is essential not to be misled – a sustainable uptrend is by no means confirmed. With trading volume still subdued and volatility on the rise ahead of the Federal Open Market Committee (FOMC) meeting, the recent 6% increase could be a tactic of manipulation.
Nevertheless, in the event of a bullish market turn, a significant 58% surge could potentially materialize.