- Shiba Inu bulls are on edge when the bears begin to retreat.
- A look at why SHIB holders are poised to erode some of their recent gains.
It is a big problem when ETH whales show interest in a particular crypto token. It can have a significant impact on price volatility and even price direction. This is currently the case with the Shiba Inu (SHIB) but what will be the impact?
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The SHIB token was the most traded token by ETH whales over the past 24 hours. This is according to a Whalestat analysis which also revealed that the Shiba Inu managed to flip WBTC around to secure the top spot. This development along with the series of observations over the past 2-3 days may help provide more clarity regarding price action.
Check out the top 100 whales here: https://t.co/N5qqsCAH8j
– WhaleStats (tracking crypto whales) (@WhaleStats) January 14, 2023
Is SHIB facing increased selling pressure?
The SHIB Volatility Index has been on a downward trajectory since the first week of January. It pivoted after January 11th and has been running ever since. A look at the average life of a coin can help to understand this finding. The Shiba Inu’s average life of 90 days has been rising since mid-December, before peaking on January 9.
The decline after January 9th indicates that selling pressure is re-emerging, but it is short-lived. The average age of the coin has returned to an upward trajectory, confirming that SHIB holders were bullish and holding rather than selling. SHIB’s 30-day realized ceiling also rose on January 9, indicating massive sell-off.
An important factor is that these metrics have not recovered to previous levels. Possible indication of lower demand. Unsurprisingly, the distribution of the supply reveals that some of the headline classes have offloaded some of the SHIB.
How much are 1,10,100 SHIBs worth today?
Meanwhile, SHIB price extended its upward trend in recent days to a new monthly high. It probably managed to continue rising due to the demand from ETH whales. The Shiba Inu touched as high as $0.000011 in the past 24 hours and managed to briefly breach the 200-day moving average before a significant pullback occurred.
This decline occurred within the 38.2% Fibonacci retracement level. The latter is the second Fibonacci retracement area from the 12-month low.
The timing of the ETH election observation could indicate a return of selling pressure. If so, SHIB holders should consider the potential downside. The caveat is that this depends on market conditions and major events.