Despite recent market pressure, Shiba Inu (SHIB) continues to draw attention, with over 12,000 addresses now holding at least 1 billion SHIB tokens. The cryptocurrency market, including SHIB, experienced a correction earlier this month, impacting prices across the board. Bitcoin (BTC), for instance, dipped below $65,000 before rebounding. Similarly, SHIB saw a slump to $0.000025 but has since shown signs of recovery, albeit remaining within bearish territories. 

SHIB/USD 24-hour chart (CoinMarketCap)

However, in the last 24 hours, SHIB has been in a bullish trend after support at $0.00002668. Bullish momentum, however was nullified after failure to breach the $0.00002668 resistance. At press time, SHIB has been changing hands at $0.00002793, a 1.19% surge in the last 24 hours. 

Data from blockchain analytics source IntoTheBlock reveals that investor confidence in SHIB remains strong, as evidenced by the steady holding of SHIB tokens amidst market fluctuations. Despite the challenges, the number of addresses holding significant amounts of SHIB, particularly 1 billion tokens or more, has stayed high, totaling 12,176 addresses at the time of reporting.

Distribution of SHIB Holdings Across Wallets

The distribution of SHIB holdings among these addresses reveals interesting insights. The majority of addresses, over 9,040, hold between 1 billion and 10 billion SHIB tokens, constituting the highest number of wallets but the lowest cumulative balance. On the other hand, 1,450 addresses hold between 10 billion and 100 billion SHIB, with a total balance of $1.53 billion. Notably, wallets with balances ranging from 100 billion to 1 trillion SHIB amount to 636, holding $4.8 billion.

SHIB holding (source: IntotheBlock)

Interestingly, a smaller number of addresses, approximately 51, hold between 1 trillion and 100 trillion SHIB tokens. Despite their limited number, these wallets hold significant value, with cumulative balances reaching billions of dollars. This distribution underscores the confidence among large SHIB holders, commonly referred to as sharks and whales, who are patiently awaiting potential price surges.

Long-Term Holder Confidence and Price Analysis

Amid sustained optimism, data indicates that a significant portion of SHIB investors are long-term holders. A considerable percentage, representing 73% of total addresses, have held SHIB for over one year. This long-term commitment reflects a deep-seated confidence in the potential of SHIB despite short-term market fluctuations.

SHIB/USD 24-hour chart (source: TradingView)

From a technical perspective, SHIB has been battling bears at the $0.000028 psychological price threshold. Although it temporarily relinquished this position, SHIB currently trades above key moving averages, including the 50-day EMA and the 200-day EMA. Analysts suggest that these technical indicators, combined with optimistic market sentiment, could pave the way for a bullish rally in the near future.

Factors Fueling SHIB's Potential Rally

Several factors contribute to the optimism surrounding SHIB's potential rally. Notably, significant outflows from exchanges indicate a shift towards self-custody methods among investors, reducing immediate selling pressure. Additionally, advancements in SHIB's layer-2 scaling solution, Shibarium, present promising opportunities for improved transaction efficiency and scalability.

Shibarium, designed to enhance the Shiba Inu network, has recently witnessed a resurgence in activity, with daily transactions experiencing a notable increase. This development, coupled with achievements such as surpassing 4 million total blocks on the network, underscores the ongoing progress within the SHIB ecosystem.

Furthermore, the burning rate of SHIB tokens has surged, contributing to the reduction of the maximum token supply. Moreover, recent data shows significant increases in SHIB burns, indicating a concerted effort within the community to make SHIB tokens scarcer over time.