Shiba Inu (SHIB), the popular dog-themed cryptocurrency, has experienced a surge in large investor activity, with data from IntoTheBlock revealing that whales accumulated a significant amount of SHIB in a single day. This development has fueled a buying frenzy among some investors, but analysts remain cautious regarding the token’s short-term price trajectory.
Whales Drive Shiba Inu (SHIB) Trading Volume
According to IntoTheBlock, large transaction volume on the SHIB network surged on May 21, with whale transactions (defined as those exceeding $100,000) accounting for 73.72% of all activity within 24 hours.
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This buying spree resulted in the acquisition of a staggering 5.58 trillion SHIB tokens by whales with a combined value of $145.48 million. This significant buying pressure has positioned SHIB as one of the most actively traded tokens among whales this week.
Supply Reduction and Price Implications
The substantial and noteworthy accumulation of whales in the SHIB ecosystem could potentially lead to a significant supply squeeze, which may have a profound impact on the SHIB’s market dynamics.
With a staggering 5.5 trillion tokens removed from circulation, this development could theoretically contribute to a substantial increase in the token’s price, as the reduced supply potentially fuels demand.
However, it’s essential to note that SHIB’s recent price performance has been mixed, with periods of growth and decline, making it crucial to exercise caution and thorough analysis when assessing market trends and potential outcomes.
Rally Stalls Despite Deflationary Efforts
While SHIB experienced a single-day price increase of 10%, surpassing its 50-day exponential moving average (EMA), it was unable to sustain this momentum. Analysts have expressed concerns about this short-lived rally, highlighting potential weaknesses in the current price trend. At the time of this writing, SHIB is trading at $0.0000255, reflecting a slight decrease of 0.85% over the past 24 hours, according to CoinMarketCap.
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Shiba Inu’s Long-Term Prospects
Despite the recent price stagnation, SHIB’s development team is actively pursuing deflationary measures through burn initiatives and fostering growth on the Shibarium network.
These ongoing developmental efforts and broader market trends, could lead to a potential price breakout for SHIB in the long term. However, short-term price movements remain uncertain, and investors should exercise caution and conduct thorough research before making any investment decisions.
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