- Top holder of Shiba Inu adds 1.5 trillion tokens to portfolio.
- SHIB’s price performance has declined over 45% YTD.
- Shiba Inu community grapples with sustaining burning mechanism.
On-chain analyst Lookonchain has recently reported that the top holder of Shiba Inu (SHIB) has added a whopping 1.5 trillion tokens to their already impressive portfolio. As confirmed by the smart money analyst, this strategic move was executed across two of the world’s leading exchanges, Coinbase and Binance.
Typically, such a move suggests that the whale had a long-term outlook in mind, particularly given SHIB’s lackluster price performance as of late. In fact, on a Year-To-Date (YTD) basis, SHIB has experienced a decline of over 45% in its value.
The current state of affairs indicates a noteworthy decoupling of the token from Bitcoin (BTC), as the latter has experienced a remarkable 53% surge since the beginning of the year.
Bulls must push for buying pressure at $0.00000662
Based on the daily chart for SHIB/USD, the token’s downward trend appears unbroken. Despite testing the $0.0000077 support level multiple times on June 5 and 8, SHIB ultimately succumbed to bearish pressure at $0.00000662.
According to the Bollinger Bands (BB), SHIB’s current price is volatile. The lower band of the BB was hit at $0.00000673, indicating that SHIB has been oversold.
A potential opportunity for a brief rebound may exist within the area. However, it is crucial to note that this would necessitate a surge in buying activity. To initiate a reversal, the bulls must safeguard the $0.00000662 threshold against the overwhelming influence of the bears.
Moreover, the 50-day Exponential Moving Average (EMA) in blue intersected below the 200 EMA in yellow. This technical analysis indicates that the momentum of SHIB may continue to be bearish.
A downward trend in the charts is expected
The On-Balance-Volume (OBV) has significantly dropped, reaching 239.96 trillion. This decline indicates a distribution trend further supported by the negative volume pressure. As the price of SHIB failed to close higher, the OBV state sent a clear signal of a potential downward breakout. It is important to take note of these warning signs and proceed with caution in making investment decisions.
In recent updates, the Shiba Inu community has been grappling with sustaining its burning mechanism. As per Shibburn’s latest report, the burn rate has experienced a significant decline of 81.82% within the past 24 hours. This development calls for a strategic approach to ensure the longevity of the burning mechanism and maintain the integrity of the Shiba Inu ecosystem.
The process entails transferring SHIB tokens to inactive wallets, diminishing the overall supply. This strategic move aims to foster stability within the Shiba Inu ecosystem while simultaneously driving up the token’s value over time.
Despite the incineration of a staggering 410 trillion tokens, SHIB has yet to match the surges of the wider market. Given its present state, the token may not offer immediate relief. Therefore, investors should prioritize long-term price trends over short-term profits.
Disclaimer: The insights, perspectives, and data presented in this price analysis are published in good faith. Readers must conduct their own research due diligence. Any decision made by the reader is solely their responsibility, and Crypto Outlooks shall not be held responsible for any consequential or incidental harm or loss.
