Shiba Inu (SHIB) Whales Buy 4.66 Trillion Tokens Amid 12% Price Drop
Shiba Inu (SHIB) experienced a 12.5% price decrease in the last 24 hours, reversing gains from earlier in the week.
Despite this downturn, large investors, commonly known as "whales," are capitalizing on the lower prices by accumulating more SHIB, potentially aiming to trigger a price recovery.
Whales Accumulate SHIB: A Rescue Mission?
Shiba Inu's large holder netflow has surged, reaching a two-month high. In the past 24 hours, addresses holding at least 0.1% of the circulating supply have accumulated 4.66 trillion SHIB. These whales have invested $63.7 million, betting on a price rebound.
Whale activity is vital for Shiba Inu, as these large holders can significantly influence price movements. Their substantial accumulation during the price drop indicates strong support for SHIB at these levels. Continued buying could generate upward momentum, offsetting the recent downward trend.
Profitability Concerns Among SHIB Holders
Currently, about 27% of active SHIB addresses are in profit. Historically, when the proportion of profitable addresses crosses 25%, their decisions are more likely to impact price action. If these investors decide to take profits, the resulting selling pressure could drive Shiba Inu's price lower.
The increasing percentage of profitable addresses suggests that many holders might soon cash out, especially after the recent price spike, posing a risk of further price declines.
Potential SHIB Price Scenarios
Shiba Inu is currently trading at $0.00001353, down 12.5% over the past 24 hours, holding above the support level of $0.00001317. If whale accumulation persists, SHIB may rebound from this support, targeting a rise toward $0.00001435.
A successful bounce off $0.00001317 could pave the way for further price appreciation, potentially pushing Shiba Inu to $0.00001553. Securing this level as support could signal a recovery, assuming favorable market conditions.
However, if Shiba Inu falls below the $0.00001317 support due to profit-taking, the price could drop to $0.00001188. This would invalidate the bullish outlook and reduce investor confidence. The next few days will be critical in determining SHIB's ability to maintain its current support levels.
Disclaimer: This analysis is for informational purposes only and not financial advice. Cryptocurrency investments are subject to risk; conduct thorough research before investing.
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