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This is the reason why whales are buying Shiba Inu regardless of its price action

fxstreet.com + 1 more 13 June 2022 15:15, UTC

Shiba Inu witnessed a burn of over 1 billion SHIB tokens over the past week.
Whales continued to scoop up Shiba Inu coin, the meme coin ranks among the most used smart contracts.
Analysts predict another correction in Shiba Inu price, despite rising utility and adoption by large wallet investors.

Shiba Inu coin is back in the top 10 cryptocurrencies by trade volume among 500 largest Ethereum whales overnight. Whales have continued to scoop up the meme coin, regardless of the downtrend in Shiba Inu price.

Also read: Shiba Inu faces this rare threat as burn rate declines

Shiba Inu whales increase activity

Large wallet investors on the Ethereum blockchain have continuously scooped up the so-called Dogecoin-killer through the recent dip. Shiba Inu price posted 10% losses overnight, however whales have continued accumulation.

Over the last 24 hours, activity of large wallet inventors has increased. Based on data from WhaleStats, there is a 44.44% spike in active whale addresses, as these large wallet investors interact with billions of Shiba Inu coins.

The top 2000 whale wallet addresses on the Ethereum network actively engaged in trading Shiba Inu coin despite a 25% decline in price.

Portfolio of 100 largest Ethereum whales

Shiba Inu powered Welly NFT mint successful

Shiba Inu recently powered the world’s first real-fast food business NFT, Welly Friends. Welly is the burger joint that rebranded to Shiba Inu theme and emerged as the first real-world utility of the Dogecoin-killer.

The project successfully completed the mint of its NFTs and thanked the ShibArmy for their support.

We will never be able to thank you enough for how you all were able to support us.

Dear #WellyFriends & #SHIBARMY,
We promise we’re going to keep our promises as much as you should us your dedication to this project.
Big news coming soon, and it will be constant.
— WELLY (@wellyfriends) June 12, 2022

The floor price of the collection is currently 0.29 ETH on the largest peer-to-peer NFT marketplace, OpenSea.

After the disappearance of Ryoshi, the creator of Shiba Inu, Shytoshi Kusama came forward as the project leader and stated that Welly NFTs were created to act as membership instruments. These NFTs will act as smart contracts for particular Welly locations.

ShibArmy is currently awaiting the reveal of the NFTs that currently appear as a gif. Welly NFT has promised holders that “something big is coming soon.”

Shiba Inu continues to burn

Over the past week, according to data from the burn portal, nearly 1 billion Shiba Inu coins were burned. There is a spike in burn rate of the Dogecoin-killer meme coin project. 410.36 trillion Shiba Inu tokens have been burnt so far, pulling these coins out of circulation and sending them to dead wallets.

Since these tokens are permanently removed from the supply, burn of Shiba Inu is a driver of bullish sentiment among holders and ShibArmy.

Burnt Shiba Inu

Buying pressure for Shiba Inu increased on Coinbase

Proponents have noted that, in an exciting turn of events, buying pressure on Shiba Inu has reached its yearly highs. On Coinbase, one of the largest cryptocurrency exchanges, 81% of users are keen on buying Shiba Inu, against 19% selling, according to data from the platform’s trading application.

This is the highest number of “buy” orders placed for Shiba Inu, second to what was observed in September 2021, when it was 91%. Post September 2021, Shiba Inu went parabolic and witnessed a 1,000% price rally in October.

Increase in buying pressure on Coinbase's trading app

Increase in buying pressure on Coinbase’s trading app

Analysts remain bearish on Shiba Inu price

Analysts have evaluated the Shiba Inu price trend and revealed a bearish outlook. Eno Ikenna Eteng, a leading crypto analyst, argues that the SHIB/USDT price chart reveals there is a possibility of further downside.

The analyst argues that the measured move from the collapse of the descending triangle on the Shiba Inu price chart has not been completed. The next target for bulls is $0.0000066. The June 2021 double bottom level $0.00000565 is the downside target for Shiba Inu price if the meme coin continues deteriorating.

SHIB-USDT price chart

Analysts believe Shiba Inu price could fail to break support

FXStreet analysts have observed the price chart and noted that Shiba Inu price could continue its downtrend and fail to break support. For more information, watch this video:

fxstreet.com