Today, on-chain analyst Lookonchain reported that the largest holder of Shiba Inu (SHIB) accumulated another 1.5 trillion tokens. According to the smart money analyst, the operation occurred on two of the world’s largest exchanges— Coinbase and Binance.
The largest holder of $SHIB accumulated 1.5T $SHIB ($10M) from #Binance and #Coinbase again 4 hrs ago. Address"0x40B3" holds 5.3T $SHIB($35.5M), and transferred 20T $SHIB($134.4M) to address "0x73AF" on May 16. The whale is the largest holder of $SHIB excluding exchanges. pic.twitter.com/irMR39mfwE
— Lookonchain (@lookonchain) June 13, 2023
Usually, this sort of action implies that the whale was accounting for the long-term, especially as SHIB’s price action has been unimpressive of late. On a Year-To-Date (YTD) basis, SHIB has lost more than 45% of its value.
This reflects how the token has significantly decoupled from Bitcoin (BTC) which is on a 53% hike since the year began.
Bulls Need Buying Pressure at $0.00000662
Accoridng to the SHIB/USD daily chart, the token has not halted its nosedive. After a repeated test of the $0.0000077 support on June 5 and 8, SHIB succumb to bearish demand at $0.00000662.
However, at its press time price, SHIB exhibited extreme signs of volatility, the Bollinger Bands (BB) revealed. Also, the $0.00000673 price hit the lower band of the BB. This indicates that SHIB has been oversold.
Therefore, there could be an entry point around the region for a possible short-term recovery. Nonetheless, this would require buying pressure, and if bulls desire a reversal, they’d need to protect the $0.00000662 level from the dominance of bears.
Furthermore, the 50-day EMA (blue) had crossed below the 200 EMA (yellow). When this occurs, it means that SHIB’s momentum could remain bearish.
A slide Down the charts Is on the Cards
Meanwhile, the On-Balance-Volume (OBV) had fallen to 239.96 trillion. The decline in the OBV suggests that distribution was taking place. This also reflects a negative volume pressure. Since SHIB’s price did not close higher, the OBV state signals a downward breakout warning.
In other developments, Shiba Inu was struggling to keep its burning mechanism alive. According to Shibburn, the burn rate had decreased by 81.82% in the last 24 hours.
The mechanism involved sending some SHIB tokens to dead wallets in order to reduce the total supply. In the long term, this is supposed to stabilize the Shiba Inu ecosystem while increasing the token price.
Despite burning a total of 410 trillion tokens, SHIB has failed to keep up with the hikes of the broader market. With its current condition, the toke might not provide respite anytime. So, holders might need to focus on long-term price action rather than short-term gains.
