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As the price of the Shiba Inu (SHIB) token approaches the important psychological level of $0.00000500, the number of transfers involving the token increased by 68.75% to 8,517 transactions overnight, according to Etherscan.
Considering the on-chain reality of the token, whales and retail investors staged a coordinated two-step move at the turn of the month, which is currently deciding the fate of Shiba Inu (SHIB) as it approaches the key price level.
764 whales corner 94% of SHIB supply
On July 31, large wallets moved 5.59 trillion SHIB in just 5,057 transactions, with the average size of each transfer reaching 1.10 billion SHIB. The very next day, on August 1, retail investors entered the game, and the number of transactions jumped to 8,517, while their combined volume declined to 4.08 trillion SHIB, reducing the average transfer size by more than half to 0.47 billion SHIB.
In other words, large addresses first redistributed their positions in a coordinated manner, and retail participants picked up the momentum the following day and split those volumes into smaller transactions.
The reality is that only 0.05% of wallets, or 764 addresses classified as whales, hold 94.64% of SHIB's total market capitalization. In monetary terms, the five largest holders control $2.76 billion out of the total $4.80 billion.
Meanwhile, the remaining 85.54% of individual and small-wallet holders account for a modest 0.42% of the supply. Basically, every SHIB price movement is always a decision made by this narrow group of holders.
At the beginning of the first working week of August, SHIB is being squeezed into a local range near $0.00000497, up 3.26% over the past 24 hours. The 14-day Relative Strength Index has settled at 62.16, meaning the upward momentum remains intact, while the token still has room before entering the extreme overbought zone.
SHIB price scenarios around the $0.00000500 level
In this environment, there are practically two scenarios for SHIB, and neither is directly bullish or bearish:
Breakout scenario: A daily candle close above $0.00000500 could activate pending buy orders, opening the way for SHIB to move toward its local May highs near $0.00000600.
Profit-taking scenario: If the combined two-day volume of 9.6 trillion SHIB was moved by large players onto trading platforms to take profits against current retail demand, the $0.00000500 level will act as a strong resistance zone, sending the SHIB price back toward support at $0.00000440.
The situation will be resolved in the coming days. Large holders will either allow retail investors to push the price higher or use this 68% surge in activity as ideal exit liquidity following SHIB's 8% rise since Friday.
Dan Burgin
