Shiba Inu Holders Buck the Trend as Meme Coins Struggle
This week, the overall cryptocurrency market has been facing tough times, especially hitting meme coins hard.
But amidst the turmoil, Shiba Inu, a leading meme asset, is seeing a shift in investor behavior. Holders of Shiba Inu are now holding onto their tokens for longer, showcasing their belief in the asset’s potential for the future.
As Shiba Inu holders show increased confidence in the long-term outlook, the selling pressure on the cryptocurrency is easing.
Recent data from on-chain sources has shown a significant increase in the average holding time of all SHIB coins transacted in the past seven days. According to IntoTheBlock, this metric has surged by an impressive 31% within that timeframe.
The prolonged holding time of a digital asset’s transacted coins reflects the duration for which these tokens are held before being sold or transferred. A rise in holding time indicates that investors are opting to retain their coins rather than selling them off, affirming their trust in the future value of the asset.
This positive trend comes at a time when the value of SHIB has been on a steady decline over the past few days, with the meme coin trading at $0.0000146 at present – marking a 7% drop since the start of the week. If Shiba Inu holders continue to stand strong and extend their holding periods, it could alleviate the selling pressure in the SHIB market, potentially boosting its value in the near term.
Moreover, there has been a notable increase in the number of large transactions involving SHIB recently. This surge points towards heightened activity from institutional players and whales, with daily large transactions exceeding $100,000 experiencing a more than 200% uptick in the past week according to data from IntoTheBlock.
This could be the turning point for SHIB, paving the way for a breakout or a further decline.
Analyzing the situation with the Fibonacci Retracement tool, if the current positive signals persist, Shiba Inu could breach the descending trendline that has been suppressing its price since December, potentially propelling it to $0.0000166.
On the contrary, if the downward trend continues, SHIB’s price might fall below the support level at $0.0000140 and reach $0.000010.
Exciting times lie ahead for Shiba Inu as holders exhibit confidence and activity in the market hints at a possible turnaround.