December often brings Christmas gains as retail euphoria pumps price action in the stock and crypto markets. Meme tokens are quick to rally on retail euphoria. The same has left market participants wondering whether Shiba Inu, the top Dogecoin killer, will be one of them.
On Monday, the Shiba Inu price was up by over 3% amid a sudden burst of volatility. The gains, however, were short-lived and only benefited day traders. At the time of writing, SHIB traded at $0.000009369, down 3.98% on the daily chart, reversing the recent gains.
SHIB Spot Price Action Disappoints Traders
As SHIB price action turned bearish, trade volumes saw a drop too. Daily trade volumes for Shiba Inu were at $135.58 million, dropping by 33.78% in the last 24 hours.
As highlighted, aggressive SHIB burning and accumulation of Shiba Inu tokens by Ethereum whales has acted in favor of the SHIB price. However, the Shiba Inu burn rate was down by 36.8% at press time.
The SHIB burning is aimed at reducing the supply of Shiba Inu, but it also aids short-term bullish price momentum creating some retail euphoria.
For now, looking at the low SHIB trade volumes, it is clear that retailers are not making any major moves in the spot market. However, ETH whales were still bullish on SHIB.
According to data from WhaleStats, Shiba Inu was on the top 10 purchased tokens among the 5,000 biggest ETH whales in the last 24hrs.
Despite the bullishness from ETH whales, the futures market data for SHIB showed that Shiba Inu bulls could be disappointed in the near future.
SHIB Futures Market
Coinalyze data suggested that SHIB open interest noted a 9.27% pullback and stood at $10.9 million. In addition to that, long liquidations dominated the market as SHIB longs worth $78,900 were liquidated in the last 24 hours.
Shiba Inu whales holding one million to 10 million SHIB reduced their holding by 12 billion tokens from Nov. 23 to Dec. 5.
With the largest whale cohort reducing their holdings and futures market data appearing to be bearish, Shiba Inu holders can expect some short term pain. In/Out of the Money Around Price indicator from IntoTheBlock suggested good support for the SHIB price at the $0.0000090 mark.
At the $0.0000090 mark, 28,440 addresses held 11.06 trillion SHIB. A fall below the $0.0000090 level can lead to further losses. However, if bulls are able to push price action, a short-term rise to the $0.0000095 mark can be expected.
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