Great whales bet on Shiba Inu’s long-term future

At least for now, Shiba Inu has managed to catch the attention of users. The SHIB price has increased 1000 times over last year. However, the current situation of the meme token is not so smooth.

After the outbreak of the Ukraine-Russia conflict, SHIB declined sharply. Despite this, SHIB appears to have been less affected than the general market.

Shiberse might be one of the reasons SHIB didn’t dip too low. On February 25, Shiba Inu announced the launch of 99,000 digital land parcels in his Metaverse. This excited the Shiba Inu community and provided a glimmer of hope amid a market downturn.

What do aspiring traders want?

For some retailers, “buy at a discount” is nothing more than a gamble, and a very large proportion of retailers feel the same way. At the time of writing, the meme coin is changing hands at $0.0000235, down 1.4% over the past 24 hours. Currently, traders who bought the dip in late January and opted to HODL are facing significant losses.

The bears seem to have entered the market as the token is struggling to break its weekly resistance at $0.00002713. If demand increases, the bulls can push the price higher and test the $0.00003554 area in the coming days. The RSI has saturated above the 47 level at the time of analysis.

The MACD appears to be showing bearish divergence. However, amid the market turmoil, it’s important to note that SHIB’s long-term prospects still offer upside potential. This is what traders and investors are looking for. While the price chart is yet to show a potential growth opportunity, the on-chain indicators are showing some pretty positive signals.

SHIB price chart | Source: TradingView

Whales rely on Shiba Inu?

Two major Ethereum whales bought 105.7 billion Shiba Inu tokens. According to WhaleStats, an Ethereum whale named “Light” bought a large amount of SHIB, increasing its holdings. The wallet currently holds $887,617,540 worth of SHIBs, which is 12.6% of its portfolio.

However, the second investor bought more Shiba Inu than “Light”. For now, this could signal a profitable opportunity for traders.

Whale buybacks are often a sign of an uptrend that may occur over the long term. Despite the near-term downtrend, whales still have a lot of confidence in SHIB.

The chart below shows the increase in the number of whale deals ahead of February 24th, a crucial time for those intending to enter the market.

Number of whale shops | Source: Santiment

It should also be noted that at the macro level, capital inflows to stock exchanges are dwindling. Looking at the nearer timeframe, the amount of Shiba Inu flowing into the exchanges hasn’t had much of an increase except a few times during some selloffs. Recently, on February 25, he soared and then fell. This simply means that investors panic-sold after the Ukraine conflict. But the majority of investors still want HODL to take advantage of the upcoming opportunity.

SHIB Amount Flowing to Exchanges | Source: Santiment

Before increasing risk appetite, you also need to consider SHIB’s active addresses. Daily active addresses are in the accumulation phase and have not experienced a significant increase in over three months.

This is not synonymous with a bearish move, but measures investor interest. And now interest seems to be waning a bit.

Number of active addresses of SHIB | Source: Santiment

The SHIB rally after February 24th shows that in a risk-on environment, for investors with a higher risk appetite or those looking for a high risk-reward trade-off, buying SHIB can be a good investment choice right now.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page