Around 17 million dollars' worth of Shiba Inu holdings are thrown away by Ethereum whales and here's why.

Large wallet investors on the Ethereum blockchain have consistently accumulated SHIB. Over the last few days, however, these Ethereum whales significantly reduced their holdings. With a decline in Ethereum whales' SHIB holdings, proponents expect a bearish impact on Shiba Inu.

The Shiba Inu Shares of Ethereum Whales Are Sinking Lower

Ethereum whales have emerged as one of the largest holders of Shiba Inu. Large wallet addresses on the Ethereum network were considered bullish on SHIB when their meme coin holdings crossed the $1 billion mark. However, Ethereum whales have shed some of their Shiba Inu holdings over the past few days. The 100 largest Ethereum whales now hold $982,324,880 after shedding $17.6 million in SHIB tokens, which the sentiments shifted from bullish to bearish.

Proponents note that one of the critical reasons for a drop in Shiba Inu holdings among Ethereum whales is the recent price pullback. The process can have a negative feedback effect with decrease in whale holdings, fueling a bearish sentiment among Shiba Inu holders, and then more liquidations. Further selling around the current price levels can put Shiba Inu in dangerous positions as the meme coin has been forming a descending triangle on its daily chart. A sustaining daily candlestick close below $0.000021, and more importantly below $0.000018, could trigger a 48.59% correction. Such a significant decline can send SHIB to $0.000011 or even $0.000010.

Is There Hope?

However, it is worth noting that the pessimistic outlook would be invalidated if Shiba Inu's price can slice through the $0.000023 resistance level. Moving past such a critical supply zone can encourage market participants to re-enter the market and help SHIB recover and potentially hit $0.00004.

A Brief about the Memecoin

According to the SHIBA INU website, SHIB is the "DOGECOIN KILLER" and is listed on their own ShibaSwap, a DEX. Shiba Inu coin was created anonymously in August 2020 under the pseudonym "Ryoshi." Ryoshi says himself that he is a nobody and not important and that the efforts to unmask his identity, even if successful, would be underwhelming.

This meme coin quickly gained speed and value as a community of investors was drawn in by the cute charm of the coin paired with headlines and tweets from personalities like Elon Musk and Vitalik Buterin. Vitalik Buterin was long believed to be the originator of Shiba Inu but denied such rumors on the Lex Fridman podcast on June 5, 2021. Shiba Inu aims to be the Ethereum-based counterpart to Dogecoin's Crypt-based mining algorithm. Shiba Inu and the SHIB token are part of a swarm of dog-themed cryptocurrencies, including Baby Dogecoin (BabyDoge), Dogecoin (DOGE), etc. These lesser-valued tokens have attracted investors who missed the Dogecoin pump from 0.0002 to nearly 0.75 USD.

More Trending Stories