Shiba Inu (SHIB) had a tough week, dropping 13% in value. Despite the decline, a group of whales showed their confidence in the leading meme coin, steadily increasing their holdings over the past weeks.
However, short-term holders (STHs) sold their coins, adding pressure to the price. This analysis explores why selling activity by STHs may prevent SHIB from having any significant rally in the short term.
Shiba Inu Whales Resist Short-Term Carriers
BeinCrypto's assessment of Shiba Inu supply distribution shows that a group of whale investors holding between 10,000 and 100,000 coins have increased their supply over the past weeks.
This group of large SHIB holders now control 3.06 billion SHIB, up 2% from the 3.01 billion SHIB they held just a month ago. Their decision to accumulate more coins may have been prompted by SHIB’s undervalued status throughout September, as evidenced by its market value to realized value (MVRV) ratio.
According to this metric, SHIB’s 30-day and 90-day MVRV ratios were negative for most of September, indicating that the coin was trading below its historical value, which may have prompted these whales to buy more coins.
However, SHIB STHs, those who have held their coins for less than 30 days, have taken a more cautious stance. True to their fiat-sell nature, they have been selling their coins in recent weeks.
Their selling activity is notable, as STHs tend to be risk averse, dumping their assets at the first sign of trouble. Given that they hold a large portion of the circulating supply of SHIB, their selling activity puts significant downward pressure on the coin’s price.
SHIB Price Prediction: Looking to $0.000010
SHIB’s accumulated trading volume reflects the decline in selling activity by short-term SHIB holders. At 24.79 trillion, the meme coin’s accumulated trading volume, which measures buying and selling pressure based on trading volume, has maintained a downward trend since the beginning of the month.
A decrease in accumulated trading volume is usually a bearish indicator, indicating a potential downward price movement. When accompanied by a decrease in price, it indicates a lack of buyer support. If demand for SHIB continues to decline, it could return to the August 5 lows of $0.000010.
However, if short-term SHIB holders become bullish and start accumulating, it could push the Shiba Inu price up 69% to test the resistance formed at $0.000028.
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