Shiba Inu's price plunging further due to large investors dumping their holdings
Lo Down on Shiba Inu's Struggles: Network Realized Profit/Loss and Whale Shenanigans
Things ain't looking good for Shiba Inu, despite the meme coin's reputation for being a walk in the park. The digital pooch's price took a nosedive to $0.00001275, hitting a low not seen since May 9 and shedding a hefty 28% from its May peak.
The on-chain data shows Shiba Inu's Network Realized Profit/Loss (NPL) has been in the red for a while, indicating investors are sellin' their coins at a loss. This bearish sentiment coincides with the ongoing whale selling nonsense, with the big fish Decreasing their holdings from 748 trillion tokens in January to just over 718 trillion today. Meanwhile, the supply of Shiba Inu on exchanges is seein' a steady rise, dolling out increased sellin' pressure.
Additional data reveals Shiba Inu's spot market volume is down in the dumps. Over the past 24 hours, it only posted $141.8 million in daily trading volume, havin' peanuts compared to Dogecoin's $764 million and Pepe's $1.08 billion.
Network Realized Profit/Loss (NPL)
The Network Realized Profit/Loss (NPL) measures the gap between the price at which investors cough up and let go of their cryptocurrencies. In Shiba Inu's case,, the fluctuatin' price and wacky investor behavior has been sketched out, but ain't got specif' NPL data for the meme coin. Generally, a positive NPL means more investors are sellin' at a profit, drivin' down the price if there ain't no buyer-buyer action to balance it.
Whale Selling Impact
Whale activity can wreak havoc on Shiba Inu's price trend. Here's the lowdown on their recent shenanigans:
- Whale Accumulation and Bullish Vibes: Just a few weeks back, there was a 2,952% surge in whale inflows, pointing to strong accumulation and hopeful feelings about SHIB headin' towards $0.000025. This accumulation was expected to reduce volatility and drive upward momentum.[2]
- Whale Sell-offs and Bear Market: However, recent reports show these whales started sellin' more than they were accumulatin', puttin' downward pressure on the price. One whale even transferred over $31 million worth of SHIB to Coinbase, showin' a readiness to unload their holdings.[5]
- Resilience: Despite the negative vibes from whale sell-offs, Shiba Inu managed to rise slightly, defying some predictions for a slump. This could be due to factors like decreased burn rates or market fluctuations.[5]
In the end, the whale activity can lead to both up and down market movements, depending on whether they're accumulatin' or sellin'. The recent decrease in the burn rate adds to the uncertainty over SHIB's short-term price performance.
Sources:1. https://coinmarketcap.com/currencies/shiba-inu/2. https://cryptodaily.co.uk/2022/03/shiba-inu-crypto-whales-why-it-is-time-to-buy-shib3. https://www.benzinga.com/news/2022/04/27/shiba-inu-whales-may-signal-a-big-move-coming-as-shib-price-tops-000044. https://blockchain.newscrypto.com/crypto/shiba-inu/5. https://ambcrypto.com/shiba-inu-headlines-whale-sell-off-and-investor-capitulation-gives-bearish-bias/
- The Network Realized Profit/Loss (NPL) data for Ethereum shows a positive trend, indicating more investors are selling their tokens at a profit, potentially driving up its price.
- The whales' recent sell-offs in Shiba Inu, Dogecoin, and Pepe have put downward pressure on their respective prices, resulting in decreased daily trading volumes for these meme coins.
- The ongoing whale selling in the cryptocurrency market, including Bitcoin and Ethereum, has contributed to the overall bearish sentiment in the finance sector.
- Shiba Inu's struggles in the crypto market, marked by whale shenanigans, have led to the growth of decentralized exchanges (DEXs) as investors seek alternative platforms to buy and sell tokens.
