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Things are not looking good for the Shiba Inu token (SHIB) lately, judging by the price chart of the popular meme cryptocurrency. Losing nearly 55% since December, the Shiba Inu token is currently trading near its yearly lows, and it seems that even when the market goes fully positive, like last Sunday for example, there is some force that does not let SHIB off the hook.
What can it be? Well, thanks to the transparency of blockchain technology, there can be a given answer to what exactly is suppressing the quotes of the beloved-by-many meme cryptocurrency.
Tomiwabold OlajideLooking at the on-chain data presented by IntoTheBlock, for example, it becomes clear that there is a huge pool of Shiba Inu tokens formed in the range of $0.000014 to $0.000019 per SHIB.
This means that 46,240 addresses have accumulated 549.56 trillion tokens in this exact price range, and considering that the price of SHIB is currently $0.0000135, all of these tokens are currently underwater and causing losses to their holders.
The catch
However, there is a big catch, as about 410.43 trillion SHIB of this amount are those tokens that are located in the burn address used by Vitalik Buterin back in 2021.
Thus, the sum is much less dramatic than 549.56 trillion, but it is still almost 140 trillion SHIB, which is equivalent to $1.89 billion, and with each leg down, this brings more and more losses to holders, creating significant pressure on the price of SHIB.
Arman ShirinyanIt is just that such a large amount of tokens have accumulated in this tight range and are now acting as resistance. Who would not want to get out at least at break-even when the market is shaken up almost daily?
Dan Burgin
Vladislav Sopov