Will history repeat itself for Shiba Inu long-term holders

Shiba Inu [SHIB] It dropped to number thirteen in market value according to CoinMarketCap as the price of the meme coin plummeted.

The altcoin, which recently enjoyed strong bullish moments, was trading at $ 0.0000128 at press time. This price represented 12.91% diminish from its 24 hour state.

Before the capitulation, SHIB was largely in the greens. Between August 14 and August 15, SHIB increased from $ 0.0000126 to $ 0.0000174. Despite a few drops, the altcoin managed to hold a good level at $ 0.0000148 through August 18.

While the reason for this fall could be related to Bitcoin [BTC] price decrease, other things have happened.

Time to redeem

According to Santiment, both Dogecoin [DOGE] and Shiba Inu [SHIB] they were both “victims” of profitable whales.

The analytics platform on the chain also said it was routine for the whales, especially as parts of the week produced profits.

SHIB data also revealed that these transactions were high in amount. This, of course, would have led to a capitulation, and the drastic fall was not surprising.

Furthermore, the result may not have been as surprising as Ethereum [ETH] they were the whales dumping their SHIB holdings first.

Source: Santimento

However, there has been one positive update to look into the SHIB ecosystem: burn rate. While a decreased the burning rate led to a price increase about two weeks ago, the recent one did the opposite.

At press time, the SHIB burn rate had rose over 225% with over 224 million SHIB burned.

Source: Shibburn

As expected, whale activity too wanted The volume of SHIB and active addresses.

A look at Santiment showed that SHIB’s volume, which was around $ 4.35 billion on August 15, was now under $ 900 million.

Active addresses also followed a similar trend, going from 12,670 on the aforementioned date to 5094 at the time of going to press.

Source: Santimento

So what’s next?

For SHIB investors, hoping for a short-term upside may seem too soon. Its four-hour chart revealed that SHIB had been losing since August 18th until the time of writing.

In fact, it was almost losing the support of $ 0.00001262 after falling from the $ 0.0001437 level.

Additionally, the Moving Average Convergence Divergence (MACD) was significantly below the zero level of the histogram, demonstrating that sellers were in control.

The selling momentum (orange) also remained above the buying pressure (blue). With all these indications, SHIB is likely to remain in the red.

Source: TradingView

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