Journalist
Posted:
- SHIB’s trading volume increased sharply while its price fell in the last few days.
- Buying pressure, however, was increasing, which hinted at a trend reversal.
Shiba Inu [SHIB], one of the most popular memecoins, has earned multiple investors fortunes over the past years. One of them recently made over $6 million by selling the memecoin. But are all investors making money?
Shiba Inu whale is making profit
Lookonchain, a popular X handle that posts updates related to investor activity, recently posted a tweet revealing that a SHIB whale sold 250 billion SHIB. This transaction alone earned the whale a profit of $6.05 million.
The whale spent $3.8K to buy 15.28 trillion SHIB, worth $1.22 billion at the peak as early as the 6th of August 2020. As per the tweet, this whale currently holds 2.15 trillion SHIB, worth $52.18 million, with a total profit of $109 million on SHIB.
In fact, AMBCrypto also reported a few days back that whale activity around SHIB has increased. To be precise, Shiba Inu witnessed a 41% spike in large transactions, amid price consolidation at $0.00002759.
However, since then, SHIB has fallen victim to price correction. As per CoinMarketCap, the memecoin’s price dropped by over 9% in the last 24 hours alone.
At the time of writing, the world’s second largest memecoin was trading at $0.00002202 with a market capitalization of over $12.97 billion. Because of this latest setback, over 600k SHIB addresses were “out of money,” which accounted for more than 42% of the total number of SHIB addresses.
What’s next for SHIB?
AMBCrypto then assessed the memecoin’s on-chain data to find out whether a trend reversal can happen. As per our analysis, SHIB’s trading volume increased sharply while its price fell.
Whenever that happens, it suggests that the chances of a token’s price falling further are high.
Source: Santiment
However, there was better news. Buying pressure on the memecoin increased slightly last week. This was evident from the decline in Shiba Inu’s supply on exchanges.
Additionally, while the supply on exchanges fell, its supply outside of exchanges went up, further establishing the fact that buying pressure was rising. Another positive metric was the NVT ratio.
Glassnode’s data revealed that SHIB’s NVT ratio declined. This meant that the memecoin undervalued, indicating a possible price hike in the coming days.
Source: Glassnode
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Apart from this, the technical indicator Money Flow Index (MFI) registered an uptick—an indication of rising buying activity. If that results in a trend reversal, then SHIB might once again move towards $0.00002615.
Source: TradingView