The cryptocurrency Shiba Inu, the same coin competing with DOGE, has seen a steady decline since its dizzying ATH on October 28. While she seems to go against the grain of bullrun the last few weeks, she has caught the interest of the Whales. The latter took advantage of each dip to buy and accumulate more than 20 billion tokens.
- From the rise of the Shiba Inu to its descent into hell
- Understand the whale accumulation strategy
- Technical analysis of the Shiba Inu price
- The buy signal given by the whales
The breathlessness of the cryptosphere’s favorite Shiba Inu
We all remember the meteoric rise of the Shiba Inu in October. The latter went from $ 0.000007 on September 30 to $ 0.00008 on October 27. That is to say an increase of 1100% which allowed it to appear for a few days in the top 10 cryptocurrencies. For a few hours we even witnessed a real war between the DOGE and the Shiba Inu to become the crypto dog with the largest capitalization.
In a few weeks, small investors have thus become millionaires and even for some billionaires. The famous token meme had already experienced a first rise in the spring. But that had nothing to compare to this one. Supported by a very large community, these surges show that popular enthusiasm can have as much influence on prices as the technological innovation brought by other cryptocurrencies. But since this peak, we are witnessing regular drops in price. While we are in the middle of a bull run, the Shiba Inu loses almost 40% compared to his ATH.
Many followers of the Shiba Inu are worried about the future of this competitor of the DOGE while the experts of Investor Place “Recommend to diversify [les achats] on several tokens to protect your investment ”, referring to the risk of Shiba Inu volatility.
SHIB / USD price for 1 month on Coinmarketcap
Whales continue to accumulate Shiba Inu SHIB
This fall does not only make people unhappy. During the four main dips that have taken place during the last fortnight we have seen a massive purchase of SHIB by large portfolios. From whales (whales) as they are called in stock market parlance. These purchases, on average one million dollars, that is to say twenty billion Shiba Inu, show that unlike small wallets whales do not worry about a massive fall in the price but rather have a strategy of accumulation and take advantage of this trend reversal to buy at a lower cost.
At the same time, Ethereum was the second cryptocurrency to be so invested by whales. With an average purchase of 39 ETH ($ 179,000). These signals indicate that the same coin now falls into the category of the cryptocurrency elite in terms of investment. In addition, at the end of October, a whale had already bought the equivalent of eleven million dollars from Shiba Inu. It is as if this bullish rally was for him only the beginning of the performance of this cryptocurrency.
Back to the history of the first Inu Coin
Like the DOGE, Shiba Inu is a people’s currency. Its founders therefore did not keep any of their tokens and distributed everything. The donation of half of the coins to Vitalik Buterin, who himself gave 10% to an Indian fund before burning the rest, was a strong symbolic gesture in tribute to the founder of Ethereum but also a clever publicity stunt. After this burn, no whale could bring down the price of Shiba Inu on its own. Parody of Dogecoin, this currency has become a myth, a promise of fortune for a growing community. The dream that the Shiba Inu will reach a dollar is thus a leitmotif of the discussions around this token.
However, the story of the Shiba Inu is more complex. First of all because it is not the same corner like any other. Even if its origin is a joke, its future is more serious since it is a question of building an ecosystem around a DEX, Shibaswap, and a series of NFTs, with in addition a farming offer promised as enticing. In addition, the latest whales transactions relativize the myth of a cryptocurrency for the people but show that it is watched by big investors.
Should we follow the whales?
We know that whales have a huge influence on the price of cryptocurrencies, especially since each of their transaction is public through blockchain technology. While it is never good for whales to have too large a share of the available tokens because they could cause prices to fall, they can also be a factor of stability.
The first danger cannot be completely ruled out because apart from those of the exchange platforms, two of the largest wallets each hold 8% of the remaining tokens and, at the beginning of November, a token transfer equivalent to $ 2.3 billion. dropped the price by 11%. But recent purchases show that a widespread sale by these whales is unlikely. On the contrary, they can be a factor of consolidation of the price before a future rise. It may therefore be interesting to take advantage of this correction to increase your position on this token.
A few weeks after the bullish surge of the Shiba Inu and in full correction, several whales continue to invest in the famous meme coin. Far from being inconsiderate, these purchases show the confidence they place in the community federated around the Shiba Inu. If this bet is successful, we can expect further upward pressure on its price in the coming months.