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Update: We have chosen to revise the article in response to input from the Shiba Inu community in order to address worries regarding the market's unequal distribution of SHIB tokens. The article mentions wallets that are linked to cryptocurrency exchanges, according to recent comments.
However, does not alter the reality, that a small number of addresses hold more than half of all circulating SHIB tokens. It is impossible to verify or deny the true allocation of funds within exchange-owned wallets due to their closed centralized structure.
Five addresses now own an astounding 57% of the entire supply, or 565 trillion SHIB tokens, which is an interesting development in the on-chain dynamics of Shiba Inu. Considering such a large concentration of funds in the hands of a small fraction of wallets, is raising questions ahead of potential market volatility.
A separation between high-activity and low-activity addresses is quite obvious in the SHIB distribution, with one high-activity wallet holding 41.7% of the total supply, which is more likely to be the"dead-end address". Understanding possible short-term price movements depends on the activity of these wallets, even though such centralization may raise the risk of market volatility, despite being owned by legit entities like centralized cryptocurrency exchanges.
In addition, recent on-chain data indicates that large holder outflows have significantly decreased, falling 31% over the last seven days. This decrease might suggest that there is less pressure on whales to sell, which would be good for price stability. But as SHIB moves closer to its 200 EMA support near $0.00002079, inflows have risen by 53%, indicating accumulation by larger players.
Gamza KhanzadaevThis ambiguity is reflected in the technical chart. Since SHIB broke below both its 50 and 100 EMAs, the 200 EMA is now the next crucial support level. Bulls still face difficulty regaining resistance at $0.00002250 and $0.00002325, while a failure to hold here could push prices toward $0.00001900. The recent inflows may indicate growing interest from strategic investors looking to profit from lower prices despite the bearish sentiment.
SHIB is especially vulnerable to large-scale transactions because of these centralized holdings, which means that any abrupt movement by whales could significantly alter market dynamics, reflected in exchange outflows or inflows. In the days ahead, the support level at $0.00002079 is probably the most important threshold to watch. A prolonged defense of this area combined with ongoing inflows could pave the way for a comeback. However, due to the market's reliance on a small number of wallets, prudence is advised because volatility could quickly return.
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Vladislav Sopov