Shiba Inu: Should Investors be worried about this “Alarming Scenario”?

Biraajmaan Tamuly
Shiba Inu
Source: Pexels

At $0.00002288 per token, Shiba Inu was not particularly on a hot streak right now. The altcoin should not be blamed as the market was collectively bearish. A lack of interest was not a concern, as it was recently reported that Shiba Inu has added 200,000 new users since the beginning of 2022. However, Shiba Inu might be losing a little bit of grip with some of the bigger wallets, as explained in the dataset below.

Shiba Inu; one of the most sold tokens in 7-days

According to whalestats.com, Shiba Inu was one of the most sold tokens among the top 1000 Ethereum wallets, over the past 7-days. 20.4 billion tokens have been sold during the timeline. A larger alarming scenario was the fact that every token sold more than Shiba Inu was either a stablecoin or Ethereum.

Now, technically Ethereum was the most sold Altcoin, however, if the table of the left is observed, ETH was also one of the top purchased tokens during the same time. Hence, there was a balance for Ethereum but in the case of Shiba Inu, it was not even present on the purchased list.

Why is it happening?

Source: Trading View

Rome was not built in a day, and Shiba Inu’s momentum was not deterred in one either. Since the beginning of 2022, SHIB has failed to break a consolidation range between $0.00003440 and $0.00002070. After reaching a low range during the end of January, a brief surge was observed but it failed to break the upper resistance.

Such price moment might have fractured short-term momentum for the Altcoin, as the collective market bled in the charts as well. At press time, Shiba Inu remained at the lower range of the consolidation range, which was not a positive sign either.

Silver-Lining; Interest can flip in flash?

Although price performance might have been tepid, Shiba Inu is far from becoming obsolete. It remains one of the most actively discussed Altcoin with an extremely loyal following. Another assumption can be drawn from the Whalestates table discussed above.

The fact that most wallets are purchasing stablecoins and not other altcoins means they might just be waiting on the sidelines for a rally. It could be a strategy to enter at a lower price range or capitalize when there is a prolonged bullish leg. At the moment, keeping track of such movements is paramount for Shib holders, as it may allow them to stay ahead of the trend.