The low trading volumes of Shiba Inu indicate insignificant moves in the spot market, but the Ethereum whales remain bullish. Around 28,440 addresses hold 11.06 trillion SHIB at the USD 0.0000090 level, but a drop below USD 0.0000090 might cause further losses.
December has historically brought profits into the crypto market, as collective and individual consumer euphoria often drives prices higher. Many wonder whether Shiba Inu (SHIB), also known as Dogecoin killer, will be part of it.
The Spot Price of SHIB Disappoints Investors
The trading volumes of SHIB dropped as its price action became bearish. They were around USD 135.58 million, a 33.78% loss over the last 24 hours.
The burning of SHIB tokens and the accumulation by Ethereum whales boosted the price, but the burn rate dropped by 36.8%.
The burning process aims to reduce the supply of the asset but also promotes bullish momentum, creating euphoria among investors.
The low trading volumes of SHIB indicate that people have not made significant moves in the spot market. However, the Ethereum whales remain bullish on the token.
SHIB has been among the leading ten cryptocurrencies among the top 5,000 Ethereum whales over the last 24 hours.
Although those long-term holders are optimistic, the SHIB futures market showed that Ethereum bulls might feel disappointed shortly.
Shiba Inu Futures Market
According to Coinalyze, the open interest in SHIB dropped by 9.27% to USD 10.9 million. Besides, liquidations of long positions dominated the market, with liquidation of USD 78,900 over the last 24 hours.
Since November 23rd, the Shiba Inu whales holding 1 to 10 million SHIB reduced their funds by 12 billion tokens.
Since most big crypto whales reduced their holdings and futures market data seem bearish, SHIB holders might expect difficulties soon. The In/Out of the Money Around Price indicator suggested excellent support for the price action at the USD 0.0000090 mark.
Around 28,440 addresses hold 11.06 trillion SHIB at the USD 0.0000090 level. If the price dropped below the USD 0.0000090 mark, the token might suffer further losses. However, if the bulls manage to boost the price, there might be a short-term recovery toward USD 0.0000095.
SHIB Might Be a Good Investment Again in the Long Term
Over the last few months, the value of SHIB has dropped as investor interest in the ecosystem has declined. According to Google statistics, the number of searches has decreased, the same as the number of mentions on social media.
The above situation has led the Shiba ecosystem to experience significant cash outflows. The total value locked (TVL) in ShibaSwap went from more than USD 150 million to just USD 19.6 million.
Ongoing concerns about the crypto market due to liquidity loss have also caused Shiba Inu to plummet. The collapse of FTX and problems with other crypto projects triggered it.
Over the last few months, most centralized crypto exchanges have lost many users. For example, the sales and profitability of Coinbase have fallen this year.
The number of SHIB holders has recently dropped to 1.25 million from over 1.28 million on November 22nd.
New information on the US economy may have also affected the course of Shiba Inu. For example, the US government added over 283,000 jobs in November, while unemployment remained at 3.7%.
By Alexander Salazar
