Shiba Inu Whales Show Reduced Interest in Meme Coin
Data from IntoTheBlock indicates a decline in the holdings of Shiba Inu whales over the past month. There has been a noticeable drop in the holdings of investors with different amounts of SHIB tokens:
- Investors with holdings between $100,000 and $1 million SHIB saw a decrease of over 6%.
- Whales holding between $1 million and $10 million SHIB experienced a drop of over 3%.
- Those holding over $10 million worth of Shiba Inu tokens observed a decline of over 7%.
These significant reductions in whale holdings are indicative of a trend where large investors are distancing themselves from the meme coin.
Heightened Bearish Sentiment Among Shiba Inu Whales
Recent data shows that Shiba Inu whales have been increasingly offloading their holdings in the last seven days. The netflow of large holders has plummeted by over 670%, signaling a strong desire to sell their tokens rather than accumulate more. Additionally, large transactions involving SHIB tokens have decreased by almost 5%.
The noticeable decrease in whale activity suggests a lack of confidence in the short-term prospects of Shiba Inu among major investors.
Shiba Inu Price Decline Spurs Whale Selling
The lackluster performance of Shiba Inu in recent weeks has been a primary driver for whale selloffs. As the second-largest meme coin in the market, SHIB has experienced significant price declines of over 7% in the last seven days and 14% in the last thirty days.
While part of this downtrend can be attributed to Bitcoin’s market movements, Shiba Inu has failed to recover even when Bitcoin has shown signs of improvement. This discrepancy has likely contributed to whale selling pressure on the meme coin.
Decline in SHIB Adoption and Investor Interest
Data from IntoTheBlock suggests that Shiba Inu’s adoption rate has stagnated, indicating a lack of new investors entering the market. The absence of fresh capital inflows can hinder price rallies and overall market sentiment for the meme coin.
This trend mirrors the situation with Dogecoin, another meme coin, whose network activity has remained flat for the past quarter along with a decline in new addresses being created.
Challenges for Meme Coins in Current Market Environment
Crypto analyst Altcoin Sherpa has highlighted the challenges faced by major meme coins like Dogecoin and Shiba Inu in the current market environment. These coins may struggle to generate substantial gains in the ongoing bull market, making them less attractive to retail investors.
With a significant portion of Shiba Inu’s token supply concentrated in the hands of whales, the meme coin’s price movements are heavily influenced by the actions of these large investors.
Current Status of SHIB Token
As of the latest data, Shiba Inu is trading at approximately $0.00001412, reflecting a modest increase of over 6% within the last 24 hours according to CoinMarketCap.
Hot Take: Shiba Inu Whales Trim Holdings Amid Price Concerns
Shiba Inu whales have reduced their holdings recently, signaling concerns over the meme coin’s price trajectory and overall market sentiment. The decline in whale activity, coupled with stagnant adoption rates, presents challenges for Shiba Inu in attracting new investors and maintaining price stability in the current market landscape.
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