More often than not, whales time their purchases in conjunction with reduced prices and set the stage for a price recovery. Well, sadly for Shiba Inu, the overall outlook still seems cloudy even after a whale purchased $1.7 Million worth of SHIB on the day. Here’s why.
With a monthly loss of 20%, it’s safe to say Shiba Inu investors did not enjoy April as much as they would have hoped. Apart from a brief rally following a Robinhood listing, Shiba Inu has mostly traded within a downtrend throughout the month. Losses became more severe last week as SHIB snapped a 3-month low at $0.000200 following yet another broader market correction.
Source: TradingView
Fortunately, SHIB’s current range between $0.000200-$0.000220 was one of the safest areas on the chart. Investors have known to accumulate within this zone – a development that has already helped with three SHIB rallies this year.
Ethereum Whales right on cue
Source: Twitter
With a crucial buy zone in play, top Ethereum whales loaded their purses to buy an attractive-looking SHIB. A notable purchase was made by the well-known Ethereum wallet ‘BlueWhale0073’, which bought 77.4 Billion SHIB tokens, worth $1.7 Million at the time of the transaction. Shiba Inu also featured among the most bought tokens during the day with an average purchase amount of $10,000.
Source: IntoTheBlock
Other Shiba Inu investors yet to follow trendsetters
Sure enough, when whales come to play, others follow. Right? Well, not exactly. Although whales have set a buying trend, the same did not create excitement among other large holders. Data showed that large holders of NetFlow (those holding more than 0.1% of SHIB’s supply) ticked up by just 27% during the week – not nearly enough to suggest a grander accumulation process. In retrospect, the same figure rose much higher and preceded SHIB rallies in January and February.
Source: IntoTheBlock
Secondly, there wasn’t much retail demand for SHIB either. Buy volumes on exchanges has remained low even after SHIB tagged its demand zone on 30 April. Moreover, fewer addresses were actively engaging with their tokens, suggesting that interest in SHIB was still dwindling. According to IntoTheBlock, SHIB’s daily active addresses were down by 17% for the week.
Conclusion
An asset trading within a major buy zone is not always a foregone conclusion for a price hike. Positive signs were at a bare minimum and but SHIB required assistance from other large players to solidify an accumulation trend to increase the chances of a price hike.