As the crypto market takes a brief pause after impressive growth last quarter, large investors’ attention seems to be shifting towards meme coins, presenting a notable trend amidst the dynamic landscape of cryptocurrencies.
This is exactly what happened with the dog-themed cryptocurrency Shiba Inu (SHIB), as three new wallets accumulated a staggering 184 billion SHIB, worth approximately $4.9 million, mid-this week.
According to a Wednesday tweet by the renowned on-chain “The Data Nerd,” these fresh wallets withdrew the SHIB from major exchanges like Binance and Coinbase within 24 hours.
Furthermore, this surge in SHIB whale activity is complemented by a significant increase in large holder netflow. According to data from onchain analytics firm IntoTheBlock, Shiba Inu has experienced a positive 1,058% uptick in large holder netflow over the past 30 days, signifying a broader trend of accumulation by whales as bulls launch full gaze on the $0.001 price level. This trend also suggests a growing confidence among whales in the long-term prospects of SHIB despite short-term price volatility.
Notably, amidst SHIB’s growing traction, there has also been a parallel surge in meme coin trading, as highlighted by a report from Coingecko earlier this week. As per the report, meme coins experienced an impressive 1,312% average returns in the first quarter of 2024, with coins in the layer 1 category like Bitcoin, Ethereum and Solana posting just 70.0% returns.
Despite the positive indicators and bullish momentum projected by various pundits, SHIB’s price remains susceptible to volatility. After surging impressively in early March and tapping a multi-month high of $0.000045, the cryptocurrency has recoiled by around 33%.
According to crypto analyst “SHIB KNIGHT,” the current movement of SHIB within the range of $0.00002392 to $0.00003308 suggests a potential consolidation phase. In a tweet to his 427,000 followers, the analyst highlighted support levels at $0.00002392 and $0.00002125 as potential buy zones in the event of further downward movements.
That said, based on insights from IntoTheBlock, if the downtrend persists and SHIB breaks below its current trading range, the next crucial support levels to watch out for fall between $0.000019 and $0.000025. This range is significant, with a substantial volume of approximately 71.03 trillion SHIB, recently acquired by 82,920 addresses at an average price of $0.000023.
At press time, SHIB was trading at $0.00002688 after a marginal downturn of 3.43% in the past 24 hours.
