- As the market anticipated the following move, Shiba Inu demand from whales increased.
- However, the demand was insufficient to drive a significant upside.
Since the beginning of December, Shiba Inu [SHIB] has been passive with hardly any notable developments. Fans of the cryptocurrency token will be pleased to learn that it was one of the most bought tokens among the top 1,000 ETH holders, though.
The top 1,000 ETH whales as of December 11 held Shiba Inu valued at over $17.5 million, according to the most recent data from WhaleStats. As a result, the memecoin held more than $23 million more than UniSwap [UNI], the second-most-held token by ETH whales. SHIB was the fifth-ranked token on the list thanks to the aforementioned sum.
For holders of Shiba Inus, what does it mean?
The aforementioned observations demonstrated that Shiba Inus could still demand and elicit attention from whales. This made the altcoin a strong contender for potential short-term bullish relief. Additionally, a few on-chain observations confirmed this prediction.
The number of Shiba Inus held by the top addresses as a proportion of the total supply increased from the beginning of the month, according to the analysis. This indicated that the top addresses have been building up.
Given SHIB’s origins as a memecoin and its current growth, this was not unexpected. This was particularly true given its efforts to establish itself as a utility token and its long-term objective of creating its own blockchain.
Shiba Inu’s supply distribution matched up with the analysis, confirming that its top addresses have increased their balances.
If the whales keep accumulating, especially when market conditions improve, Shiba Inu will eventually give way to the bulls. Additionally, the majority of SHIB buyers were observed holding onto their coins rather than selling in a panic. The increase in the mean coin age since mid-November served as confirmation of this.
But between December 7 and 10, there was a brief sell pressure that showed up as a decline in the mean coin age. Such circumstances highlight price suppression. Nevertheless, the price movement of Shiba Inu has so far stayed within the same range for the past two weeks.
Relative Strength Index (RSI) for SHIB was circling just below 50%. This suggested that there wasn’t enough bullish momentum to support a rally.
Even the strong demand from whales couldn’t be viewed as sufficient to push for a significant upside. The fact that whales were purchasing, however, suggested that they believed in the token. Shiba Inus could therefore rank among the top performers during the upcoming temporary relief.