Despite a recent decline in Shiba Inu's popularity and burn rate, which could exert additional pressure on its price, other indicators suggest a potential rebound. The price of Shiba Inu (SHIB) dropped by 6.5%, mirroring the broader market downturn. However, whale activity has surged to a monthly high, indicating that large investors might be buying at discounted prices. This uptick in whale activity coincides with the Shiba Inu community’s plans to launch a decentralized autonomous organization (DAO). Meanwhile, retail traders have capitalized on the situation by shorting the asset. The question remains: can SHIB weather this market storm?
Whale Accumulation Could Trigger a Shiba Inu Price Rally
In the last 24 hours, Shiba Inu whales have significantly increased their activity as the price dropped, likely taking advantage of lower prices to expand their portfolios. Data from Santiment shows a notable spike in activity among whales holding SHIB worth $100,000 or more, marking the highest level of activity since July 18.
Additionally, IntoTheBlock data reveals that the net flow of large holders was positive between August 26 and 27, suggesting that the surge in whale activity during the price decline could be due to large holders accumulating more SHIB tokens.
This increased whale activity aligns with Shiba Inu’s upcoming plans to launch a decentralized autonomous organization (DAO), as announced by SHIB's Head of Marketing, "Lucie." The DAO will allow SHIB holders to vote on future initiatives and have a say in the project’s direction, further involving the community in the decision-making process.
Impact of Declining Popularity on Shiba Inu Price
While the recent market drop driven by Bitcoin has put SHIB at risk of an extended 6% decline, whales have been quick to accumulate more tokens. However, Shiba Inu's popularity appears to be waning, with Santiment reporting that its social dominance has fallen to 0.268%, a one-year low.
The sentiment around Shiba Inu is also currently more negative than positive, which could contribute to further price declines. This drop in popularity may be linked to the recent decrease in the Shiba Inu burn rate.
According to the Shibburn platform, the burn rate has recently plummeted, with only 261,691 SHIB burned in the last 24 hours, compared to over 7 million SHIB burned the previous day—a nearly 100% decrease. The burn rate is a key metric indicating community engagement and token scarcity, and this sharp decline could suggest waning enthusiasm among holders. Alternatively, SHIB holders might be holding onto their tokens in anticipation of a price increase, rather than burning them.
Outlook for Shiba Inu
Despite the current challenges, Shiba Inu remains a strong project with potential. The ongoing price downturn is part of a broader market trend, and a rebound, similar to what occurred after the August 5 dip, could lead to a stronger recovery. If this scenario plays out, Shiba Inu's price could surge by 35% to reach $0.00001740, according to some predictions.
In conclusion, while Shiba Inu faces short-term pressures from declining popularity and burn rate, the accumulation by whales and the upcoming DAO launch provide reasons for cautious optimism about a potential price rebound.
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