Buying ETH whales SHIB is good news, but is it enough?

The last 50 days have been quite difficult for SHIB. The second largest meme coin on the market has lost over 60% of its value. In the late hours of December 20th, the altcoin saw its lowest price since October 23rd when it was trading at $ 0.00002824.

However, as Bitcoin surged above $ 49,000, SHIB also rose significantly by nearly 10%. In fact, before the sudden surge, an ETH whale bought $ 50,000,000 SHIB to drive the price to the moon.

4-Hour SHIB Price Chart | Source: Tradingview

Will SHIB “bark” louder?

Compared to the ATH set at the end of October, SHIB is currently trading 60.6% lower. However, certain developments in the Shiba Inu ecosystem have managed to maintain the relevance of the coin. Recently, ShibaSwap developer Eric M even updated the progress of Shibarium, SHIB’s Layer 2 solution, and announced that it will be out soon.

In addition, SHIB tokens are burned regularly. To some extent, this mechanism has the potential to drive the price of the asset up in the future. To date, a total of 410,299,323,623,191 SHIB tokens, or 41.02993% of the supply, have been destroyed from the 1 million billion initial shipment.

While all of these are considered good for keeping SHIB going, this dog coin needs more than that.

Community indifferent to dog coin?

In the past few weeks, the price and popularity of high-risk, potentially bullish assets like meme coins have plummeted amid heightened market volatility. DOGE, SHIB, FLOKI and other “DOGE killers” were hit as the market pretends to reduce portfolio risk.

However, since the ETH whales are buying SHIB and speculation about a listing of Shiba Inu by Robinhood in April 2022 could show a certain upward trend.

However, WhaleStats says that most of the whales currently in possession of the SHIB will buy it at a much higher price than they do today. This leads to significant damage to them. If you look at the Global In and Out of Money indicator you can also see that 569.52k addresses (54.72%) are profitable at a price of $ 0.000032. Notably, 366.23k addresses (35.19%) are lost.

The source: IntoTheBlock

On the flip side, the ownership stats are still worrying as very few HODLers own SHIBs. In fact, SHIB hit 1,000,000 owners by the end of November, and the increasing number of HODLers could be the main growth driver for SHIB as this group has completely disappeared, while medium-term investors and short-term traders are responsible for its dominance.

Source: IntoTheBlock

On the other hand, thanks to the bullish SHIB, the trading activity in the last 24 hours on Coinbase represents 67% purchases and 33% sales. However, the small number of active addresses and the speed of network development are still hindering the further development of the meme coin.

In the short term, a retail investor led rally could help SHIB price rally, regardless of indicators in the chain that suggest the network is underperforming.

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