A crucial support for Shiba Inu (SHIB) has been identified that could have far-reaching implications for the price outlook of the meme coin. IntoTheBlock data indicates that 43.8 trillion SHIB from across 222,450 addresses were acquired at a price level of $0.000011, forming the strong support.
Most SHIB holders in red
According to CoinMarketCap data, Shiba Inu is currently trading at $0.00001153, which is 0.00053 cents away from hitting the acquisition price for which these addresses bought the meme coins. This suggests that many SHIB holders are closely watching price movement.
If Shiba Inu drops further in value, this could trigger a sell pressure on the dog-themed meme coin. These addresses might dump their assets if the price crashes further to prevent losses.
As per IntoTheBlock data, this development has been made worse by the current outlook in the Shiba Inu ecosystem. Only 10%, or 8.04 trillion SHIB valued at $1.13 billion, are “In The Money,” which indicates that most investors are already at a loss.
An additional price decrease could trigger a massive sell-off of Shiba Inu on the meme coin market.
Meanwhile, 871.61 trillion SHIB, valued at approximately $10.01 billion, or 88.88%, are “Out of the Money.” The remaining 11.06 trillion SHIB, or 1.13%, are “At the Money.”
Can whale inflows and burn rate offer relief?
The current setup signals that SHIB needs ecosystem support to trigger a price rebound. For instance, large transaction volume has dropped by about 88%.
However, if whales go on an accumulation spree, it might support a price rebound and prevent Shiba Inu from depreciating further.
Interestingly, U.Today reported a 6,306% spike in whale inflows, the highest within six months. The activities of SHIB whales and the increase in burn rate could help reverse the downward price movement of the meme coin.
The next few days could reveal where Shiba Inu stands in the broader crypto market.
Read the full article here
