Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Though its on-chain metrics, especially the startling 548 trillion SHIB held by addresses that are currently out of the money, tell a true story, Shiba Inu is displaying unexpected resilience on the market. There is tremendous pressure on the asset to break important resistance levels because almost 88% of SHIB holders are sitting at a loss.
As can be seen from the price chart, SHIB is making minor bullish advances toward the resistance at $0.000013, while remaining close to the $0.000012 zone. Even though this might seem insignificant, the context — more than 866 trillion SHIB, or more than $10 billion, held at higher price levels — adds significance.
Some could even say that these out of the money wallets are praying for a breakout that will allow them to reduce their losses or exit their positions. Large-holder activity and volume also influence the story. The 30-day inflow has increased by almost 192% according to the inflow/outflow chart for large holders, suggesting that whales are hoarding SHIB, perhaps in expectation of a recovery.
Arman ShirinyanOutflows, however, fell by more than 71%, indicating that whales are either staying put or moving into new positions rather than leaving. Despite the dismal historical losses, this divergence may indicate that long-term holders are becoming more confident. Remarkably, just 10% of existing holders are in the money, which means they purchased SHIB at a discount to the current price.
Valeria BlokhinaIntense volatility may result from this unbalanced placement. There may be a cascading rally as traders aim for the next psychological levels, such as $0.000015 and $0.000017, if SHIB is able to break above the $0.000013 resistance. With increased buying volume and bullish divergence forming on the RSI, SHIB is technically displaying strength.
But in the absence of a breakthrough, the 548 trillion SHIB tokens that are currently losing value continue to weigh heavily on the market's upward trend. In short, SHIB is at a crossroads. We may see a change in sentiment and perhaps even a recovery that finally brings some of those red-held trillions back into the green — if demand keeps increasing and the price breaks important resistance levels.
Vladislav Sopov
Dan Burgin