Though its on-chain metrics, especially the startling 548 trillion SHIB held by addresses that are currently out of the money, tell a true story, Shiba Inu is displaying unexpected resilience on the market. There is tremendous pressure on the asset to break important resistance levels because almost 88% of SHIB holders are sitting at a loss.
As can be seen from the price chart, SHIB is making minor bullish advances toward the resistance at $0.000013, while remaining close to the $0.000012 zone. Even though this might seem insignificant, the context — more than 866 trillion SHIB, or more than $10 billion, held at higher price levels — adds significance.
Some could even say that these out of the money wallets are praying for a breakout that will allow them to reduce their losses or exit their positions. Large-holder activity and volume also influence the story. The 30-day inflow has increased by almost 192% according to the inflow/outflow chart for large holders, suggesting that whales are hoarding SHIB, perhaps in expectation of a recovery.
Outflows, however, fell by more than 71%, indicating that whales are either staying put or moving into new positions rather than leaving. Despite the dismal historical losses, this divergence may indicate that long-term holders are becoming more confident. Remarkably, just 10% of existing holders are in the money, which means they purchased SHIB at a discount to the current price.
Intense volatility may result from this unbalanced placement. There may be a cascading rally as traders aim for the next psychological levels, such as $0.000015 and $0.000017, if SHIB is able to break above the $0.000013 resistance. With increased buying volume and bullish divergence forming on the RSI, SHIB is technically displaying strength.
But in the absence of a breakthrough, the 548 trillion SHIB tokens that are currently losing value continue to weigh heavily on the market’s upward trend. In short, SHIB is at a crossroads. We may see a change in sentiment and perhaps even a recovery that finally brings some of those red-held trillions back into the green — if demand keeps increasing and the price breaks important resistance levels.
Read the full article here