Shiba Inu: Why whales buying SHIB might not be the complete big picture

Lavina Daryanani
Source: Coinbase

Shiba Inu’s price has made rapid north-bound strides over the past day. After inclining by more than 7% in the said period, SHIB was seen exchanging hands at $0.00002 at the time of press. Alongside, its market cap too had ballooned up to $14,969,024,564 on Monday.

Members from the SHIB army were quite ecstatic with the token’s short-term performance. In just the past hour alone, for instance, over 2000 tweets encapsulating the keywords ‘shib,’ ‘shiba’ and ‘#SHIB’ were made.

Source: Twitter

In effect, Shiba Inu managed to grab a position for itself in LunarCrush’s ‘Top 10 Coins by AltRank’ chart. With a 24-hour social volume of 56.51k and a 3.54% social dominance, Shiba Inu managed to seal the third spot for itself.

Interestingly, the first and second-ranked Solana and Axie Infinity’s volumes and social dominance figures were hardly close to that of Shiba Inu.

Source: LunarCrush

Zooming out

Owing to the recent price action, a couple of top Ethereum whales have loaded their bags with Shiba Inu over the past few hours, but on the whole, the large transaction numbers have been pretty fragile of late.

As can be noted from ITB’s charts attached below, the number and volume of on-chain transactions greater than $100k have been revolving under 300 and 4 trillion over the past day.

The said numbers are typically lower when compared to 7 February’s levels – the day when SHIB appreciated by 14%. Whales have collectively aided SIHB’s rallies in the past, and for the token’s price to continue swinging high from here on, they would have to start doing some heavy lifting.

Source: ITB

Apart from that, Shiba Inu’s correlation with Bitcoin continues to be more than 90%. This means that its price, to a large extent, is tied to that of the king coin’s. In such a case, SHIB would also require support from the broader market to continue with its uptrend.