The recent correction in the cryptocurrency market has impacted meme coins like Shiba Inu (SHIB) heavily. Despite a 5.4% price surge in the last 24 hours, SHIB has fallen to $0.00002404, reflecting broader market sentiment. However, amidst the dip, on-chain data reveals some interesting trends suggesting long-term bullishness for Shiba Inu.
Whale Accumulation Continues Despite Market Downturn
While the market correction triggered selling pressure, whale accumulation for Shiba Inu has remained robust. Lookonchain, a blockchain analytics firm, reported that nine wallets, including two whales, collectively acquired a whopping 1.35 trillion SHIB tokens worth $35.2 million. Interestingly, four of these investors used their Ethereum holdings to purchase SHIB, highlighting their confidence in the project’s future. Their entry points varied, with some buying at lows of $0.00002557 and others at highs of $0.00002620.
This whale activity follows a previous instance reported by Lookonchain, where a single whale invested $18.44 million by exchanging Ethereum for 715.9 billion SHIB tokens. This continuous accumulation by whales suggests their belief in Shiba Inu’s long-term potential, despite the short-term price fluctuations.
SHIB Price Faces Resistance at $0.000026
A significant hurdle for Shiba Inu’s price rise lies at the $0.000026 level. At this price point, a large number of addresses (over 64,320) collectively hold 69.74 trillion SHIB tokens. Whenever the price approaches this level, these addresses tend to sell, creating selling pressure and pushing the price down. This phenomenon is evident in the recent price correction, where SHIB retraced most of its gains after encountering resistance at $0.000026.
Shiba Inu Community Fights Back with Burns
Despite the bearish trend, the Shiba Inu community is actively working to reduce the circulating supply. The burn rate for SHIB has witnessed a remarkable 3900% surge in the last 24 hours, resulting in the elimination of 4.03 million tokens. Notably, this substantial burn originated from a single wallet address, showcasing a community-driven effort to decrease SHIB’s overall supply. This strategy, if sustained, could contribute to future price appreciation in the long run.
Conclusion
The current market correction presents a mixed picture for Shiba Inu. While the price has dipped, whale accumulation and a surging burn rate indicate long-term optimism within the community. Overcoming the resistance at $0.000026 and maintaining a high burn rate will be crucial factors to watch for Shiba Inu’s future price trajectory.
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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