Shiba Inu Faces Spike in Purchases After Reaching Fundamental Support

Shiba Inu

Shiba Inu sees increased demand from large Ethereum wallets even after disastrous performance in May

According to the most recent data from the official WhaleStats Twitter account, Shiba Inu has moved back to the top of the most actively bought assets among whales, as it just hit support that some traders are actively betting on.

As the daily Shiba Inu chart suggests, the token is on its way to reaching the local low of $0.000011. Unfortunately for SHIB investors, the token briefly dropped to $0.000009 at some point, causing a massive spike in the selling volume, which the SHIB market has not seen since February 2022.

At the beginning of May, Shiba Inu broke below the descending triangle chart pattern, which should have become the basis for the price rise, but caused the token to drop further.

Why are whales still buying Shiba Inu?

Shiba Inu’s price performance after the all-time high was a complete disaster for any retail investor who held through until $0.00001, which also makes the profitability of the token for whales close to zero.

Whenever large investors face losses, they on average reduce their position in order to break even when or if assets decline. The consistent purchases we see from whale addresses are on average down.

While various traders and investors see Shiba Inu falling to “zero,” whales might slowly take control over the ‌supply and then ease the selling pressure on the memetoken, which at some point was the main competitor of Dogecoin, which has also lost over 80% of its value since the ATH.

At press time, Shiba Inu is trading at $0.000011 after an unsuccessful attempt to reach $0.000015.


Read Previous

Shib Record Burning Brought No Results: Price Drops 7% More

Read Next

Here’s Why Bitcoin Looks Ready to Plunge Further: Bloomberg

Leave a Reply

Your email address will not be published. Required fields are marked *

Right Menu Icon