Shiba Inu: Ethereum whales keep the faith but what does SHIB have to show

Ethereum whales total accumulation of Shiba Inu was a huge $75.28 million, far ahead of their other holdings

SHIB’s performance has been nowhere near impressive despite the attention gained. Short-term consolidation likely, and possible respite in the long-term.

Fourteenth-ranked cryptocurrency, Shiba Inu [SHIB] has been unable to repay the faith Ethereum [ETH] whales have in it. The token which was a formidable part of providing retail therapy in 2021 had found it difficult to compensate these whales with a significant price increase.

In fact, the inability to produce profits took another turn as SHIB hit the lowest 2022 value on 13 November. 

Here’s Shiba Inu's [SHIB] price prediction 2023-2024

Is this an unprofitable business?

WhaleStats data, on 15 November, showed that the top 5,000 Ethereum whales held $75.28 million worth of the memecoin. According to the whale tracking platform, this represented a $16.59 million difference over second-placed MakerDAO [MKR]. 

https://twitter.com/WhaleStats/status/1592389890490208256

This implied that these whales held SHIB  in high regard but has SHIB returned that favor? On the wider outlook, the cryptocurrency was not in any place close to that. According to CoinMarketCap, SHIB’s volume in the last 24 hours was a 30.62% decline.

At $200.19 million, it meant that retail investors did not consider the token worthy enough to engage in transactions. It was even worse that many cryptocurrency seemed to have recorded gains in the last 24 hours with Bitcoin [BTC] and ETH not left out. For SHIB, it preferred to choose the other route with a 0.62% decrease.

Per price action, SHIB position indicated a resolve to remain lower than the current $0.0000092. This was because of the Exponential Moving Average (EMA) position derived from the daily timeframe chart. According to the chart, SHIB’s 20 EMA (blue) positioned itself below the 50 EMA (yellow).

As a result of this stance, SHIB’s potential movement might prevail in bearishness.

Source: TradingView

However, it seemed like there could be a halt on the reds in the long term. This  was due to the indications of the 200 EMA (orange). Based on the signal from the 200 EMA, SHIB might not last all year with bears in control as there would be some respite.

As for the Awesome Oscillator (AO) at -0.00000138, it clearly gave signs that SHIB’s momentum was in defeatist mode. Hence, it was unlikely to have the token revived soon. 

Burns brushed aside

In addition, the SHIB burn rate also felt the impact of the recent decrease. According to Shibburn, the burn rate had shredded 11.85% in the last 24 hours. Although it spiked over 1000% on 14 November, the current state indicated that fewer holders earned from the dead wallet circulation. 

Source: Shibburn

In other parts of its chain, SHIB seemed to be succumbing to drawdowns. According to Santiment, its network growth had increased incredibly to 9,406 as of 14 November. However, the same metric was off the top radar at press time.

At this point, it meant the user addition and new addresses were rarely created on the SHIB network. This state meant that ETH might need to wait longer to potentially catch profits from their holdings.

Source: Santiment

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