TL;DR
Shiba Inu’s price has dropped 25% over the past week, but essential factors indicate that a fresh rally could be just around the corner.
One such element is the upcoming Bitcoin halving, which is expected to take place later this week.
Whales on the Move
Shiba Inu is among the worst-affected cryptocurrencies during the ongoing market decline, with the SHIB price tumbling by 25% weekly. However, some optimistic indicators signal that the valuation might head north in the short term.
One such factor is the increased whale activity, with numerous large investors purchasing a substantial amount of tokens.
As observed on Etherscan, a whale amassed over 107 billion assets from Coinbase on April 14 when SHIB dropped to a six-week low. Other big investors also jumped on the bandwagon, buying billions of tokens in the following days.
Such moves from whales can positively impact the SHIB’s value since purchasing a significant amount of assets reduces the available supply on the market, making it scarcer. Large transactions from investors of that type may also influence positive market sentiment, potentially triggering enthusiasm among industry participants.
Abandoning Exchanges
Another element worth observing is the Shiba Inu exchange netflow, which charted massive red candles in the last several days (according to CryptoQuant’s data).
SHIB Exchange Netflow, Source: CryptoQuant
Shifting from centralized exchanges to self-custody methods is considered bullish for the asset’s price since it decreases the immediate selling pressure.
The BTC Halving
Last but not least, we will touch upon the approaching Bitcoin halving (scheduled for the end of this week). The ground-breaking event that takes place roughly every four years slashes in half the rewards distributed to miners for validating blocks on the blockchain.
It leads to a decreased rate at which new BTC are created and enter circulation. For its part, the subsequent scarcity can push the asset’s price up (assuming demand rises or stays the same).
Historically, the halving has been followed by a huge resurgence of the primary cryptocurrency and the entire digital asset market, meaning Shiba Inu can benefit, too.
Those willing to learn more about the event and prepare for it, feel free to check our dedicated video below:
The post Three Reasons Why the Shiba Inu (SHIB) Price Can Take Off Soon Despite Recent Crashes appeared first on CryptoPotato.
