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Shiba Inu (SHIB) Price Needs More Than Just Ethereum Whale Support; Here’s Why

Analytics

beincrypto.com 08 November 2022 11:15, UTC
  
Reading time: ~3 m

Shiba Inu (SHIB) price was down 8% on the day at press time, along with cryptocurrencies across the board. Is there anything that can help it turn the ship around?

A bearish start to the week on Nov. 7 pulled down the prices of most of the top cryptos, including the top meme coins that charted quite a run in October-end. Shiba Inu price action, however, presented some gains on the hourly chart despite the larger bearish blues.

As of late, aggressive SHIB burning and the accumulation of Shiba Inu tokens have acted in favor of the meme token’s price. So, can whales and burns save the SHIB price action this time too? Let’s find out.

40M Shiba Inu Burned

A recent update from Shibburn highlighted that in the last 24 hours, there had been a total of 40,128,196 SHIB tokens burned.

In late October, Shiba Inu’s burn rate had spiked by a massive 1,800%. Notably, a monthly burn rate average of about 4 billion was observed till September. However, the SHIB burning process has plateaued since then.

Despite the SHIB price gaining momentum throughout the end of October, its burn rate has been significantly affected. On Nov. 8, SHIB’s 24-hour burn rate had fallen by almost 58%.

Source: Shibburn

The recent burn brought the number of SHIB tokens burnt to date to over 410 trillion.

Burning tokens aims to decrease the supply, thereby affecting price and demand. However, this hasn’t always panned out for SHIB. Data from CoinMarketCap shows that the SHIB price is trading at $0.00001093 — a 7.77% fall over the last day.

Nonetheless, SHIB’s 24-hour volumes stood at $471 million in a 12% rise over the last day.

Ethereum Whales Still Hungry for SHIB

For the SHIB price, the $0.0000100 mark has acted as a key support/resistance. A look at Shiba Inu’s daily price chart suggests that the SHIB price sank over the last three days, down almost 16% from the $0.0000120 level.

SHIB/USDT 1-day chart | Source: TradingView

While SHIB’s weighted social sentiment was positive, it hadn’t moved much. Additionally, Shiba Inu’s social volumes sank following the price move to lower levels.

Source: Santiment

A slight spike in SHIB’s daily trade volumes on CoinMarketCap was a healthy indicator, however, this could also indicate Shiba Inu liquidations as price momentum turned bearish.

However, one interesting trend was that despite the bearish price trend, Ethereum whales were still stacking up on SHIB. Data from WhaleStats showed that the top 2,000 ETH whales had SHIB as their top holding, with over $102 million worth of SHIB tokens.

Even though ETH whales could aid the SHIB price momentum, some retail support would be key.

A look at SHIB’s address holdings suggests that ‘holder’ numbers spiked by 53.94%. The number of SHIB ‘cruisers,’ who played a crucial role through the 2021 rally, dwindled by 25.14%.

Source: IntoTheBlock

If SHIB holders can turn things bullish, it’s possible that the Shiba Inu price could revisit $0.0000120. However, the $0.0000100 level is acting as a support level for now. A fall below that could potentially lead to further sell-offs.


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