Shiba Inu Faces Spike in Purchases After Reaching Fundamental Support

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Thu, 05/19/2022 - 11:00
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According to the most recent data from WhaleStats official Twitter account, Shiba Inu has returned to the top of the most actively purchased assets among whales as it just reached the support that some traders actively bet on.

As the daily Shiba Inu chart suggests, the token is on its way to reaching the local low of $0.000011. Unfortunately for SHIB investors, the token briefly dropped to $0.000009 at some point, causing a massive spike in the selling volume, which the SHIB market has not seen since February 2022.

Source: TradingView

Back in the beginning of May, Shiba Inu fell below the descending triangle chart pattern, which should have become a foundation for the price's rally up but ‌caused a further dropdown on the token.

Why are whales still buying Shiba Inu?

Shiba Inu's price performance after the all-time high was a complete disaster for any retail investor who held through until $0.00001, which also makes the profitability of the token for whales close to zero.

Whenever large investors face losses, they average down their position in order to break even when or if the assets retrace. The constant purchasing we see from whale addresses ‌is averaging down.

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While various traders and investors see Shiba Inu falling to "zero," whales might slowly take control over the ‌supply and then ease the selling pressure on the memetoken, which at some point was the main competitor of Dogecoin, which has also lost over 80% of its value since the ATH.

At press time, Shiba Inu is trading at $0.000011 after a failed attempt to reach $0.000015.