- ETH whales seize the chance to make short-term profits for Shiba Inu.
- SHIB could be confined to a limited range if there is not enough demand.
Whalestats analysis from 5 January revealed that Shiba Iu is the most popular breed of Shiba. [SHIB] It has been relegated to the 10th most traded crypto tokens according to trading volume, among the 500 largest ETH whales.
This is a good sign in terms of demand as the price attempted to bounce off a major level. This observation may have a twist that doesn’t necessarily translate into bullish volumes.
JUST IN $SHIB @Shibtoken It is now back in the top 10 for trading volume among 500 largest companies #ETH Whales in the past 24 hours🐳
Check out these top 100 whales: https://t.co/tgYTpOm5ws
(and hodl $BBW For the top 500, see data!#SHIB #whalestats #babywhale #BBW pic.twitter.com/e9KCp8HHCF
— WhaleStats (tracking crypto whales) (@WhaleStats) January 5, 2023
Are your holdings looking green? SHIB Profit Calculator
By contributing bullish or negative volumes, whale activity can be reduced in both directions. SHIB was the last time ETH whale activity favoured SHIB at the end December.
The cryptocurrency was already showing some upside just a few days after the initial announcement. While not a huge upside, the cryptocurrency has enough potential to make large profits in large trades.
Another retail shakedown of the ordinary?
SHIB’s transaction volume saw a surge that peaked on 29 December. The transaction volume dropped for the next few weeks until it reached its peak on 29 December. On 5 January, there was a new spike.
Source: Santiment
There was also a fascinating correlation between address activity and transaction volume. There was a surge in 24-hour active addresses from 26 December – 1 January before activity quickly tapered out. From 4 January to the time of writing, there was another surge in address activity.
Source: Santiment
These observations indicated that ETH whales were targeting short-term marginal profits, and here’s why. Bullishness was triggered by a spike in transaction volume and address activity towards the end December. This was supported in part by ETH whale accumulation, which may have encouraged retail traders FOMO into, creating some exit liquidity.
What does the Shiba Inu’s metrics suggest?
The same point can be made easier if you look at the price movement during the same period. SHIB was able to rally as high as 12% over December lows. This resulted in a interaction with the 50 day moving average.
Source: TradingView
How many SHIBs could you buy for $1?
Interesting thing is that the 50 day MA was used as a signal to profit-taking. This occurred as the RSI reached mid-point. Thus, it was another sell signal. This could indicate that there is sell pressure behind the recent surge of ETH whale volumes. Since then, the price of ETH has dropped by about 5% to its press-time price.
SHIB’s recent upside looks like it was backed by low activity, thus the lack of strong momentum. The ETH whales could have profited from the opportunity to cash in some profits. SHIB could be forced to enter a more narrow range due to low demand and the current support level.