Shiba Inu has been high on Ethereum whales’ shopping list despite SHIB price action looking largely barren. So, with support from ETH whales and other macroeconomic factors pushing price action, does SHIB price stand a chance to rally before year end?
Shiba Inu (SHIB), the dog-themed cryptocurrency, has had its fair share of popularity in the market. However, alongside the larger market, the SHIB price struggled last week after FTX’s fall.
After making a multi-week high of $0.00001519 on Oct. 29, SHIB began its consolidation and downtrend. Nonetheless, with the global crypto market looking grim on the price front, SHIB managed to briefly surpass Solana to become the 13th largest cryptocurrency.
At the time of writing, Shiba Inu maintained its 14th rank in the market after crossing Tron’s market cap. SHIB traded at $0.000009105 on Nov. 15, noting 16.59% losses on the weekly.
Shiba Inu: The ETH Whale Favorite
As highlighted in a previous BeInCrypto article, the aggressive SHIB burning and accumulation of Shiba Inu tokens has acted in favor of the meme token’s price. A recent update from WhaleStats showed that the top 5,000 ETH whales were hodling $75.28 million worth of SHIB.
In fact, SHIB topped ETH whales’ list in terms of altcoins holdings.
And that isn’t all — Shiba Inu was also one of the most-used smart contracts among the top 1,000 ETH whales over the last 24 hours.
Clearly, SHIB was not just an asset that ETH whales also held but used as well. This was a positive sign for Shiba Inu and could act in favor of the token’s price trajectory.
While ETH whales were bullish on SHIB, the Shiba Inu community also had high expectations for the SHIB price. The SHIB community on CoinMarketCap estimates the token will be valued at an average price of $0.00001123 by year-end.
From the current $0.0000091 price level, SHIB would need to appreciate by slightly over 20% to reach that target.
SHIB Supply Shrinking, But Is There Demand?
On Nov. 15, the Shiba Inu burn rate spiked by 1,100%. The recent burn brought the overall amount of SHIB burned from the total supply down to 410 trillion SHIB tokens, with 27 trillion of those tokens being staked.
While the burning of SHIB tokens can lead to a significant supply reduction, price momentum would depend largely on demand for the token.
Thus, taking a look at SHIB’s supply distribution could help assess the chances of a rally.
Notably, cruiser addresses (1-12 months) for SHIB were dwindling while holders (1 year+) were rising. Traders (less than 1 month) saw a 71.17% rise in the last 30-days. The larger price action appears to be mostly driven by the holder and trader groups.
Holder addresses saw a 52.94%, while cruiser addresses saw a 27.58% drop. This can be interpreted as cruisers becoming holders while very few mid and short-term holders have entered the market.
The major group that led price action was retail traders. A look at IntoTheBlock’s In/Out of Money Around Price indicator suggested that the $0.0000080 level is currently a solid support level. At this price, 18.12 trillion SHIB tokens are held by 24,800 addresses.
As for a SHIB rally, bulls would need to pump the SHIB price above the $0.000010 mark, where 18,000 addresses hold 10.5 trillion tokens. If this resistance is crossed, SHIB can then aim for the predicted $0.000011 target price.
Disclaimer
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