The general crypto market has faced significant headwinds this week, with top meme coins among the hardest hit.
However, leading meme asset Shiba Inu is witnessing a notable shift in investor behavior. The Shiba Inu holders are increasing their average holding time, signaling confidence in the asset’s long-term potential.
Selling Pressure Eases as Shiba Inu Holders Take Control
On-chain data has revealed a spike in the holding time of all SHIB coins transacted in the past seven days. According to IntoTheBlock, the metric has soared by 31% during that period.
The holding time of an asset’s transacted coins measures the average duration its tokens are held before being sold or transferred. When holding time spikes, it indicates that investors are choosing to hold their coins rather than sell, suggesting confidence in the asset’s future value.
This is happening amid the steady decline in SHIB’s value over the past few days. Trading at $0.0000146 at press time, the meme coin’s price has fallen by 7% since the beginning of the week. If SHIB holders remain resilient and increase their holding times, it can help reduce the selling pressure in the SHIB market, driving up its value in the short term.
Additionally, during the period in review, the number of large transactions involving SHIB has surged, signaling increased activity from institutional players and whales. According to IntoTheBlock’s data, large transactions—those exceeding $100,000—have spiked significantly. Over the past week, the daily count of such transactions has risen by more than 200%, highlighting renewed interest from major investors.
SHIB at a Crossroads: Breakout Ahead or Further Decline?
With both a rise in holding time and an uptick in daily large transactions, SHIB’s recent losses could be short-lived.
According to readings from its Fibonacci Retracement tool, if these bullish signals persist, the meme coin could break above the descending trendline that has kept its price in decline since early December. A breach of this long-term resistance level could propel SHIB’s price to $0.0000166.
Conversely, if the decline persists, SHIB’s price could break below support at $0.0000140 and trade at $0.000010.
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