Shiba Inu bulls on edge as bears start to push back. A look at why SHIB holders should brace for an erosion of some of the recent gains.
It is quite a big deal when ETH whales show interest in a particular crypto token. They can have a significant impact on price volatility and even price direction. This is currently the case with Shiba Inu (SHIB), but what will be the impact?
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The SHIB token was the most traded token by ETH whales in the past 24 hours. This is according to Whalestats analysis, which also showed that Shiba Inu managed to flip WBTC to secure the top spot. This development, combined with the series of observations over the past two or three days, may help provide more clarity on price movements.
Check out the top 100 whales here: https://t.co/N5qqsCAH8j
— WhaleStats (crypto whale tracking) (@WhaleStats) January 14, 2023
Is SHIB experiencing an increase in selling pressure?
SHIB’s volatility index has been on a downward trajectory since the first week of January. It tipped after Jan. 11 and has been rising ever since. A look at the average coin age can help understand this outcome. Shiba Inu’s 90-day average coin age has been rising since mid-December before peaking on Jan. 9.
The post-January 9 pullback suggests a resurgence in selling pressure, but it was short-lived. The average coin age returned to an upward trajectory, confirming that SHIB holders were turning bullish and holding rather than selling. SHIB’s realized 30-day limit also increased on Jan. 9, suggesting a massive sell-off.
An important takeaway is that these stats have not been restored to previous levels. A possible indication of lower demand. Unsurprisingly, the supply distribution shows that some of the major address categories have unloaded a number of SHIBs.
How much are 1,10,100 SHIBs worth today?
Meanwhile, the price of SHIB has been extending its upward momentum to a new monthly high in recent days. It may have managed to continue rallying due to demand from ETH whales. Shiba Inu peaked at $0.000011 in the last 24 hours and managed to briefly rise above the 200-day MA before a significant pullback.
This pullback occurred within the 38.2% Fibonacci retracement level. The latter is the second Fibonacci retracement zone from the current bottom in 12 months.
It is possible that the timing of the ETH whale sighting points to the return of selling pressure. If so, SHIB holders should brace themselves for the more potential downside. The caveat is that this depends on market conditions and major events.
This post Shiba Inu [SHIB] sees more activity from top ETH whales, but…
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