After a rollercoaster year in 2023, the dog-themed meme coin is showing signs of life in the first half of 2024.
Shiba Inu (SHIB), the self-proclaimed “Dogecoin Killer,” is in the news again. With a growing holder base, a strategic support network, and a recent price increase, SHIB appears poised for a potential rise.
However, persistent selling pressure and the ever-present shadow of its all-time high keep investors cautious.
Shiba Inu Finds Strength in Numbers
SHIB’s popularity continues to rise. The number of Shiba Inu holders on the Ethereum blockchain has surpassed a staggering 1.4 million, a new milestone that reflects the coin’s expanding reach.
This surge in headlines indicates a growing community of believers in SHIB’s potential, which could translate into a more stable and resilient market presence.
Shiba Inu Establishes Support System for Price Stability
Beyond the growing base of holders, SHIB has created a strategic support system that could act as a safety net in case of price fluctuations. These areas, called “support groups”, are located at $0.00001 and $0.000014, and concentrate areas of buying pressure.
Essentially, a significant number of holders originally purchased Shiba Inu at these prices, meaning that a large number of tokens would be repurchased if the price falls below these levels.
Furthermore, the data suggests that a large portion of current SHIB holders are making profits. This metric, often visualized as “In and Out of the Money” by blockchain analysis tools, incentivizes them to hold onto their tokens rather than sell them at a loss.
Shiba Inu Still Barking at All-Time High
Despite the positive developments, a cloud of caution hangs over SHIB. The current price sits comfortably above the aforementioned support groups, but remains significantly lower than its all-time high of $0.00008616, reached in the meme coin frenzy of 2021.
Furthermore, while the recent surge price trend is encouraging, there is still more selling pressure than buying pressure in spot markets. This imbalance suggests that some investors are eager to withdraw money, which could hinder a sustained price rise.
Significant Increase in Shiba Inu Token Movement Sparks Speculation
According to U.Today, a significant increase in the movement of SHIB tokens has been observed in the last 24 hours, with a total of 4.34 billion SHIB tokens changing hands. This represents a substantial increase in large transactions within the Shiba Inu ecosystem, generating speculation and anticipation.
Recent data indicates a 215% increase in whale activity, with inflows of 4.34 trillion SHIB on April 19, a significant increase from 565.55 billion SHIB on April 17.
The Shiba Inu ecosystem is also seeing an increase in the volume of large transactions, those worth more than $100,000, which is an increase of 58.48%. This increase is mainly due to an increase in the accumulation of SHIB tokens by large holders, known as whales, who have significantly increased their bets on the cryptocurrency.
The inflow of 4.34 trillion SHIB tokens could suggest a concerted effort by whales to reinforce their positions in anticipation of future price movements or strategic maneuvers within the market.
The Way Forward for the Meme Currency
The future of the Shiba Inu remains uncertain. While recent events paint a cautiously optimistic picture, the meme coin market is notoriously volatile. SHIB’s success depends on several factors beyond its current holder base and support structure.
Continued positive developments in the broader cryptocurrency market, increased utility of the SHIB token itself, and a possible reduction in selling pressure are crucial for a sustained price rise.
By Audy Castaneda
