- Ethereum whales capitalize on the opportunity from Shiba Inu’s near-term gains.
- An absence of massive demand could relegate Shiba Inu to a constricted range.
According to January 5 Whalestats analysis, Shiba Inu joined the top ten list of digital coins by trading volume by the leading 500 Ether whales. That presents a lucrative signal for demand, as prices attempted a rebound from a massive support mark. Nonetheless, there could be changes to this narrative that might not catalyze bullish volumes.
Whale activity might influence by contributing to either bearish or bullish volumes. Remember, whale activity has never favored Shiba Inu since December end. A few days later, the crypto attained some upside. Though not a massive upside, it was adequate to generate impressive returns for large investors.
Another Retail Shakedown?
Shiba Inu’s transaction volume witnessed an uptick that peaked on December 29. The following few days saw transaction volume dipping until January 5, when the alt recorded another increase in transaction volume.
Further, there was a fascinating connection between address activity and transaction volume. There were upticks in daily active addresses between December 26 and January 1 before activity tapered quickly. Also, another address activity resurgence appeared from January 4 until this publication.
These observations showed Ethereum whales targeted near-term marginal returns. Why? The upsurge in transaction volume and address activity during the December end session triggered a bullish pivot. ETH whale accumulation accompanied this, which could have attracted retail investors to FOMO, building some exit liquidity.
What does SHIB Metrics Suggest?
Evaluating the price action in that same timeframe might emphasize the point. Shiba Inu triggered a rally from December lows, gaining 12%. That saw it interacting with the 50day Moving Average. The fascinating thing is the 50day Moving Average served as a profit-taking signal.
Thus, the latest upsurge in Ethereum whale volumes could be a selling pressure. That has seen the price plummeting by approximately 5% to the current prices. Low activity backed the latest Shiba Inu’s upside, thus an absence of robust momentum.
Ethereum whales might have capitalized on accumulating some profits. Therefore, considering limited demand and the current support floor, the alternative token might dip into a narrow territory in the near term.