Shiba Inu (SHIB) is experiencing a period of consolidation, with its price hovering around the $0.00002 mark. While the broader market grapples with volatility, on-chain data reveals interesting insights into whale behaviour and potential future movements.
Whales Show Strong Hands
According to IntoTheBlock, a significant number of whales – 397,000 addresses to be exact – are holding a combined 2.44 trillion SHIB tokens, with an average purchase price of $0.00001. This substantial holding suggests whale confidence in SHIB’s long-term potential. Additionally, recent market dips haven’t deterred these whales, as evidenced by their accumulation of over 223 billion tokens during the price drop to $0.000018.
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Support and Resistance Levels
The $0.00001 price point appears to be a critical support level for SHIB. This level has acted as a psychological barrier, preventing steeper price declines throughout 2024. For a bullish short-term outlook, SHIB would need to overcome the 50-day EMA (exponential moving average) currently sitting at $0.00002781.
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Historical Context
Interestingly, The Crypto Basic uncovered the existence of six SHIB addresses holding a staggering five trillion SHIB tokens each, acquired in March 2021. These holdings, currently valued at over $110 million, demonstrate long-term commitment from a select group of investors. Furthermore, SHIB has a history of explosive growth. In 2021, it experienced a remarkable surge of over 880,000%.
Looking Ahead
The coming months after the Bitcoin halving event are likely to bring continued market volatility, potentially influenced by geopolitical factors. However, the established support level of $0.00001 and the whales’ continued accumulation offer some hope for SHIB’s stability. If history repeats itself, SHIB could potentially witness significant price increases again.
Analyst Note: It’s important to remember that cryptocurrency markets are inherently volatile, and past performance is not necessarily indicative of future results. Investors should conduct their research before making any investment decisions.