Leading meme coin Shiba Inu (SHIB) has seen a steady price climb over the past week. This price growth has been fueled by accumulation by its large holders, commonly known as whales.
This consistent buying pressure has positioned SHIB for further potential gains, with the coin now eyeing a monthly high.
Shiba Inu’s Reduced Selling and Whale Interest Fuel Rally
According to IntoTheBlock, SHIB has noted a 16% rise in its large holders’ netflow over the past week. These are whale addresses that hold more than 0.1% of the meme coin’s circulating supply. Their netflow tracks the difference between the coins they buy and the amount they sell over a specific period.
When large holders’ netflow increases for an asset, it means that more tokens flow into the wallets of major investors or institutions than flow out. This trend indicates that these holders are accumulating the asset, signaling confidence in its future value.
Further, SHIB’s price rally has also been driven by the general market’s reduced selling activity out of fear of incurring losses. Per Santiment’s data, the coin’s negative Network Realized Profit/Loss metric indicates that many traders who sold their coins over the past week did so at a loss.
Hence, the desire to make gains on their investments has deterred many SHIB holders from selling, contributing to its price hike.
SHIB Price Prediction: Profit-Taking Could Cause Decline
At press time, the meme coin trades at $0.000022. If selling pressure remains minimal and its whales intensify their accumulation, the Shiba Inu coin price will breach resistance at $0.000026 and revisit the $0.000033 monthly high.
On the other hand, if traders start to turn a profit and selling pressure strengthens, the meme coin could shed its recent gains and drop below $0.000021.
Disclaimer
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