Can Shiba Inu pull off a bullish move now that whales are accumulating?
- Shiba Inu struggles to bounce back as investors wait on the sidelines for key market data.
- SHIB whales disrupt sell pressure after buying the dip but the coast is not yet clear.
The Shiba Inu community is breathing a sigh of relief now that the digital asset’s selling pressure slowed down. The bears controlled the dog-themed token since 19 April but bearish exhaustion was evident at press time. But is SHIB ready for a sizable bounce back?
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Well, recent data suggested that some whales have been buying the dip. This was evident by a surge in the supply held by top addresses on 20 April. Also, the selling pressure started slowing down after this observation.
This suggested that whale activity may have curtailed the potential downside.
Far from recovery SHIB?
Despite these findings, Shiba Inu still slipped further down before recovering and moving in a sideways price pattern. It traded at $0.000010 at press time and has been finding support within the same range.
However, the lack of strong bullish momentum was clear, hence the failure of the bulls to push the price back up.
The above outcome may indicate a low investor activity. It was also worth noting that whale activity had notably flat-lined since then. This was reflected in the MFI which has also leveled out so far this week.
It was seen to be in line with the lack of investor confidence. SHIB’s weighted sentiment metric was at its lowest weekly level at press time.
The impact of low investor sentiment was evident in SHIB’s volume which slowed down significantly in the last seven days. A bit of a volume surge was observed in the last 24 hours, perhaps a signal that investor activity was growing.
Analysts expect a wave of volume during the weekend and for the same reason why Shiba Inu experienced a slowdown in trading activity. The reason why most investors have been standing on the sidelines this week is the GDP and PCE data due to be released this week. Volume and price volatility are thus heavily dependent on the outcome of the data.
Should you be concerned about whales dumping?
There is one more major observation that Shiba Inu traders should consider especially for the long-term. Most of SHIB’s current circulating supply (96.63%) is currently controlled by addresses that hold over 1 billion SHIB.
How many are 1,10,100 SHIBs worth today
At first glance, this might lead to concerns that the supply is centralized among a few holders. However, that is not the case if we consider that it takes just $10,000 worth of Shiba Inu to be in the same category. Most of the same holders are in it for the long term, hence not much sell pressure is expected