Shiba Inu Price Declines Alongside Broader Market, But Whale Activity Surges to Monthly High
Shiba Inu (SHIB) has experienced a significant price drop, shedding 6.5% of its value in tandem with the broader cryptocurrency market downturn. Despite this decline, whale activity has surged to a monthly high, indicating that large investors might be seizing the opportunity to accumulate SHIB at discounted prices. This increase in whale transactions aligns with the Shiba Inu community’s ongoing efforts to bolster the ecosystem, particularly through the proposed launch of a decentralized autonomous organization (DAO). Meanwhile, retail traders have taken advantage of the situation by shorting the asset. The question remains: Can SHIB withstand the current market pressures?
Whale Accumulation Could Trigger a SHIBA Price Rebound
Over the past 24 hours, Shiba Inu whales have significantly increased their activity as prices fell, suggesting a potential rush to acquire more SHIB at lower prices. Data from Santiment reveals a sharp uptick in whale activity, specifically among those holding SHIB portfolios valued at $100,000 or more—the highest level of such activity since July 18.
Further supporting this trend, IntoTheBlock data indicates that large holders’ net flow was positive between August 26 and 27. This suggests that the spike in whale activity observed during the price drop may be attributed to these major holders accumulating additional SHIB tokens.
This surge in whale transactions comes at a pivotal moment for Shiba Inu, as the community prepares for the launch of a decentralized autonomous organization (DAO), as announced by SHIB’s Head of Marketing, “Lucie.” The DAO aims to empower SHIB holders by allowing them to vote on upcoming initiatives and influence the future direction of the project.
Could Declining Popularity Impact Shiba Inu’s Price?
While the SHIB price faces the possibility of an extended 6% decline following the recent market-wide downturn triggered by Bitcoin, whales continue to accumulate tokens.
However, it’s worth noting that Shiba Inu’s popularity appears to be waning. According to Santiment data, SHIB’s social dominance has dropped to 0.268%, marking a one-year low.
Moreover, the current market sentiment towards Shiba Inu is more negative than positive, which could further pressure its price. The decline in popularity might also be linked to a sharp decrease in the Shiba Inu burn rate.
Data from the Shibburn platform shows that only 261,691 SHIB tokens were burned in the last 24 hours—a dramatic drop from the over 7 million tokens burned just a day earlier, representing nearly a 100% decrease.
This reduction in the burn rate, a key metric reflecting community engagement and token scarcity, could indicate waning enthusiasm among holders. Alternatively, SHIB holders might be anticipating a price increase and are choosing not to burn their tokens.
Despite the current downturn, Shiba Inu remains a promising project with strong fundamentals. The ongoing price decline is part of a broader market trend, and, as seen on August 5, a robust recovery could follow. Should this scenario play out, Shiba Inu’s price could potentially surge by 35%, reaching $0.00001740.
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