Shiba Inu (SHIB), the second-biggest meme coin, has enjoyed a phenomenal start to 2024, doubling in value. However, recent on-chain data suggests a potential storm brewing on the horizon.
Whales Dumping, Long-Term Holders Getting Nervous
A significant surge in SHIB supply on exchanges over the past two days has hit a six-month high. This movement is often interpreted as a bearish signal, indicating whales and large holders are preparing to sell their coins. This influx of SHIB onto exchanges creates selling pressure, potentially driving down the price.
Further fueling bearish concerns is Santiment’s “age-consumed” metric, which measures the movement of coins held for longer periods. A recent spike in this metric suggests long-term SHIB holders are getting jittery and moving their coins, potentially signaling an upcoming correction.
Shiba Inu’s Performance Compared to Peers
Despite the recent bearish signals, SHIB has still outperformed major cryptocurrencies like Bitcoin and Ethereum in 2024. SHIB boasts a 111% year-to-date gain, compared to Bitcoin’s 60.5% and Ethereum’s 55%. It has also eclipsed its meme coin rival, Dogecoin (DOGE), which has gained 56%.
A Glimmer of Hope: The Meme Coin Revival
However, all hope is not lost for coin. The recent resurgence of meme coins, spearheaded by the controversial rise of Iggy Azalea’s MOTHER token, could offer some tailwinds. The drama surrounding MOTHER could reignite interest in the meme coin sector, potentially benefiting established players like SHIB.
Also Read: SHIB Army On The Move: Petition Pushes For Shiba Inu ETF As Burn Rate Soars
Critical Support Level and the Road Ahead
SHIB currently trades at $0.00002182, having dipped 1.3% in the past day. A crucial support level lies at $0.000019. If this level breaks, SHIB could experience further price decline and hit new monthly lows.
Conclusion
While SHIB has enjoyed a stellar run in 2024, the recent movement of whales and long-term holders suggests a potential correction. However, the revival of meme coins could offer some support. Investors should closely monitor SHIB’s price action around the critical $0.000019 level to gauge the strength of the potential correction.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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