$SHIB

Shiba Inu has had a tough week, losing 13% of its value. However, whales continue to show confidence in SHIB's prospects

Shiba Inu whales have continued to consistently accumulate the asset over the past few weeks. However, short-term holders (STH) have been selling their tokens, which has increased pressure on the price. We look into why SHIB sales by short-term hodlers may prevent the memecoin from growing significantly in the near future.

Whales vs. Short-Term Holders

The Shiba Inu supply distribution shows that a group of large investors holding between 10,000 and 100,000 coins have been increasing their holdings over the past few weeks.

This group of whales now controls 3.06 billion SHIB, up 2% from 3.01 billion recorded a month ago. The decision to accumulate more tokens may have been influenced by the asset’s undervaluation in September, as indicated by the market value to realized value (MVRV) ratio.

According to this metric, the 30-day and 90-day MVRV indicators were negative for most of September. This suggests that the coin was trading below its historical value. This may have prompted whales to buy more tokens.

However, short-term holders, those who have held the coins for less than 30 days, are more cautious and have been selling off their holdings in recent weeks.

Short-term investors are traditionally risk-averse and sell at the first sign of trouble. Since they hold a significant share of the SHIB supply, their selling puts significant pressure on the price.

SHIB Prediction: Coin Targeting $0.000010

The On Balance Volume (OBV) indicator also reflects the selling activity of short-term holders. The OBV indicator reflects the difference between the volumes of purchases and sales. Its growth indicates increased buying interest. However, in the case of Shiba Inu, it has been in a downward trend since the beginning of the month and currently stands at 24.79 trillion.

A decline in OBV usually foreshadows a possible decline. Combined with an actual price decline, this suggests weak support from buyers. As a result, the coin could fall to the August 5 low of $0.000010.

However, if short-term investors become optimistic and start actively buying tokens, this could push the price up by 69% to the resistance level of $0.000028.