Last Updated: August 2, 2023
• The popular memecoin Shiba Inu (SHIB) has encountered bearish pressure on Sunday 16th after a bullish breakout.
• Ethereum whales are switching strategies and diversifying their portfolios, which is contributing to SHIB holding its crucial support levels.
• On-chain data shows that large transactions and net network growth are the two bullish signals for Shiba Inu.
Shiba Inu On-Chain Data Depicts Whales Stirring from Slumber
The popular memecoin Shiba Inu (SHIB) has stumbled upon resistance after last week’s bullish breakout. Despite reaching the seven-day high of $0.00000838, SHIB encountered bearish pressure on Sunday 16th and has traded below the $0.000008 resistance line for most of the week. At press time, the SHIB trades at $0.00000791, according to CoinGecko. While the canine coin lost 1.5% of its value over the week, the monthly perspective still looks green for Shiba Inu with 8.3% gains in comparison to Bitcoin’s 3.3%, with a weekly deficit standing at 4%.
Whales Switch Strategies
This signifies a change in top Ethereum whales’ behavior as they switch strategies and adapt to changing market conditions by moving around a percentage of liquidity from large caps and spreading it across cryptocurrencies with relatively smaller market caps than Bitcoin or Etherum such as Shiba Inu (SHIB). This diversification by Ethereum whales contributed towards SHIB holding its crucial support levels of $0.000007950 .
On-Chain Metrics Show Bullish Signals
The upsurge of top Ethereum whale trading activity is also evident in on-chain metrics as blockchain data analytics company IntoTheBlock presents an even split in live data — large transactions and net network growth being two bullish signals for Shiba Inu’s growth potential . The newly adopted strategy likely involves moving around a percentage of liquidity from large caps and spreading it across some cap coins such as SHIB; this diversification by Ethereum whales contributes towards SHIB staying above it’s crucial support level . Furthermore, an increase in large transactions indicates that big investors are topping up their SHIb stash, making it one of the top held assets among TOP 100 whales according to WhaleTracker . However, there is slightly bearish concentration indicator which suggests not many new whales are entering into this market yet .
Can Shiba Inu Break Through?
It remains to be seen whether or not these changes can help stabilize Shiba Inus prices so that they can break through their current resistance levels or if these changes will be just enough to keep them afloat while prices remain stagnant or volatile throughout July 2021 . Despite all pressures , if little doggy manages to hold its ground , we might witness another parabolic rise similar to Dogecoin earlier this year .
Overall , despite encountering bearish pressures during last weeks , on chain data reveals two bullish signs for shibainus growth potential thanks to new strategies adopted by Ethereum whales who are adapting themselves according to changing market conditions . It remains uncertain if these changes will be enough for Shibas break through current resistances but If they manage so , then we may soon witness another parabolic rise similar Dogecoin witnessed earlier this year .