How Shiba Inu’s dip reinforced whales’ faith

• About $41 million worth of SHIB were moved into cold wallets.
• Following the recent market downturn, traders remained uncertain about SHIB’s price action.

Shiba Inu’s [SHIB] price action may have been underwhelming of late, following an array of sell-offs. But it seemed that whales were quick to turn the short-term bearish state into long-term conviction, based on the last 24 hours.

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Fear not, the whale got this

Amid this market turbulence, Santiment reported that a surprising trend emerged. About 4.7 trillion SHIB tokens were moved to a cold wallet. The move was the seventh-biggest transfer of SHIB since 2023 began, signaling increased activity and accumulation of SHIB by whales.

This intriguing behavior also indicates a reinforced faith in the token’s long-term potential. Lately, SHIB has been affected by selling pressure. And the market capitulation influenced by Bitcoin’s [BTC] dump has ensured that the token dropped from the previous $0.00001 breakthrough.

As per the 24-hour price volatility, Santiment showed that it had increased significantly to 0.047. As a signal of fear or stress in the market, the hike in volatility suggests how uncertain SHIB can be going forward.

Therefore, there is a chance that Shiba Inu’s value can spread out over a long range of values within a short period.  As a result of the uncertainty in the market, the sentiment around SHIB has changed.

Earlier, SHIB’s weighted sentiment was as high as 2.53. But at press time, the metric has decreased to 1.35 over the course of one week. The weighted sentiment considers the positive/negative commentary about an asset.

Thus, the decline suggests waning optimism about SHIB’s short-term performance.

Source: Santiment

Slight movements only

Meanwhile, a look at the supply outside of exchanges showed that not many tokens have moved out of exchanges. The metric measures the number of tokens transferred from exchange wallets to non-exchange wallets.

And when the supply outside exchanges increases, it supports the notion of long-term storage, Conversely, a notable decrease depicts a possible move to sell. 

At the time of writing, Shiba Inu’s supply outside of exchanges was 917.06 trillion. Since the metric flatlined, it reinforced the uncertain sentiment of the broader market. In terms of dormant circulation, on-chain data showed that the metric decreased.

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Dormant circulation shows the number of unique tokens that have not moved in a long while but transacted on a given day. A high value for the 90-day dormant circulation would have suggested that long-term holders are selling.

Source: Santiment

But since the metric decreased, it implied that long-term SHIB holders shared the same sentiment as the whales who recently accumulated into cold wallets.