As the value of whale holdings on the Shiba Inu network drops, the price on the market remains stable
Shiba Inu’s holdings have fallen below the $ 2 billion mark, but the asset’s price has not changed since the value of whale holdings hit the darling mark.
According to data from WhaleStats tracking services, the value of Shiba Inu holdings has dropped by approximately $50 million. But the reason behind the drop should not be tied to the price action.
The whale activity of Shiba Inu
After the recovery in the cryptocurrency market began, Shiba Inu whales joined the rally and bought up to $ 300 million worth of SHIB tokens, which is confirmed by the history of holding the 1,000 larger Ethereum addresses.
After Shib reached its local peak of $0.00004 for one token, the buying activity from whale-tier addresses almost completely vanished, which directly impacted the price action that has now slowed down.
Shiba Inu price action
The SHIB token is down 3.4% from the most recent high and is currently trading at $ 0.000038. The most recent recovery of the token brings in 35% profit to its holders right after the asset has lost around 60% of its value.
The asset lost the larger part of its value after reaching an ATH of $0.0000879. The correction was initiated by short-term holders who were considered a majority of the Shiba Inu market. With the decreasing number of short-term holders and the appearance of mid-term holders, the asset’s price action has stabilized.
The drop in volatility and the start of the recovery can be explained by the decrease in selling pressure from short-term speculators. The purchasing activity from the address of the whale acting as fuel for the token.
