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Five whale addresses now control 57% of the entire supply, or 565 trillion SHIB tokens, which is an interesting development in the on-chain dynamics of Shiba Inu. The fact that such a concentration of funds is in the hands of a small fraction of investors raises questions about potential market volatility.
A separation between high activity addresses and low activity addresses is quite evident in the SHIB distribution, with a high activity portfolio holding 41.7% of the total supply. Understanding possible short-term price movements depends on the activity of these portfolios, although such centralization may increase the risk of market volatility.
Additionally, recent on-chain data indicates that outflows from large holders have declined significantly, falling 31% over the past seven days. This decrease could suggest that there is less pressure on whales to sell, which would be beneficial for price stability. But as SHIB moves closer to its 200 EMA support near $0.00002079, inflows increased by 53%, indicating accumulation by larger players.
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This ambiguity is reflected in the technical diagram. From SHIB fell below its 50 and 100 EMA, the 200 EMA is now the next crucial support level. The bulls are still struggling to regain the resistance at $0.00002250 and $0.00002325, while if they fail to hold at these levels, they could push prices towards $0.00001900. Recent capital inflows could indicate growing interest from strategic investors looking to profit from falling prices despite bearish sentiment.
SHIB is particularly vulnerable to large-scale trading due to these centralized holdings, meaning any sudden whale movements could significantly alter market dynamics. In the coming days, the support level at $0.00002079 is probably the most important threshold to watch. Prolonged defense of this area, combined with continued influxes, could pave the way for a return. However, due to the market’s reliance on a small number of portfolios, caution is advised as volatility could quickly return.