The Impact of Large Holders on the Future Momentum of Shiba Inu
Currently, the trading price of Shiba Inu (SHIB) stands at $0.00001879, reflecting a 3% increase in the last 24 hours. Nevertheless, trading volumes have decreased by 11%, indicating a lack of strong demand for SHIB at its current valuation.
The decline in demand could potentially be attributed to the decreased activity of large holders, commonly known as whales. Analysis of the substantial transaction volumes involving SHIB over the past week reveals a diminishing buying pressure from these major players.
Specifically, the volume of large SHIB transactions has dwindled from 2.65 trillion to 1.84 trillion in the present moment.
An upsurge in whale transactions was observed earlier this week, triggered by the recovery of Bitcoin (BTC) prices that infused optimism throughout the cryptocurrency market.
However, these whale activities have subsided since then, suggesting that they might be awaiting the right moment to either expand or diminish their SHIB holdings.
An examination of exchange data indicates that some SHIB holders are preparing to offload their holdings. At present, netflows to exchanges amount to 321 billion tokens, marking the highest level in over a week. This inflow represents a substantial increase from the negative flows recorded in the preceding day.
If these tokens are indeed sold, SHIB’s volatility could escalate, potentially leading to a decline in its trading price. Nonetheless, a deeper analysis of technical indicators reveals that buyers are still maintaining dominance in the market.
SHIB Technical Evaluation
Shiba Inu has delineated a bullish symmetrical triangle formation on the daily chart, indicating a potential takeover by the bulls. The emergence of a green signal on the Awesome Oscillator as SHIB endeavors to break out upwards from this pattern hints at a shift in momentum from a bearish to a bullish trend.
The Relative Strength Index (RSI) at 61 further underscores the prevalence of bullish momentum. However, the RSI line has displayed minimal fluctuations, hovering near flat levels, implying that SHIB might be undergoing a consolidation phase.
If Shiba Inu successfully validates a breakout from the symmetrical triangle formation, it could surge towards the subsequent resistance level at the 100% Fibonacci level ($0.00001915). Conversely, if this breakout fails, the meme coin may revisit the support at $0.0000179.
Statistics from Coinglass indicate that 51% of traders have opted for long positions on SHIB, representing an increase from the 49% recorded on the prior day. Conversely, short positions have experienced a decline. This surge in traders backing an upward trend underscores a favorable sentiment prevailing in the market.