Key Takeaways:
- Despite burning over 600M SHIB, the price fell 4% in a single day and 12.9% over the course of a week, indicating weak short-term momentum
- Whales holding 100M–1B SHIB tokens have started offloading SHIB
- Both short-term and long-term holders are lowering their exposure, according to on-chain HODL wave data
Shiba Inu’s (SHIB) recent price movements have indicated a significant decline. According to CoinMarketCap, SHIB has dropped by more than 12.9% in the last seven days. Even though more than 600 million SHIB tokens were burned, the one-day price movement showed a decline of more than 4%. Token burns increased from 160 million to over 600 million, a 277.5% rise, according to the Shiba burn tracker.
Additionally, according to data from IntoTheBlock, the daily active addresses for Shiba Inu grew by 12.9% and large transaction volume dropped by 71.2% in a single day.
Analyst Remains Bullish
According to a recent analysis by market commentator “Mark.eth,” Shiba Inu’s long-term outlook remains constructive despite its recent weakness. On July 29, he emphasized how SHIB’s weekly chart seemed to be consolidating within a traditional bull flag formation. The bullish stance from Mark.eth comes despite a noticeable fall in SHIB, which decreased by more than 12% in one month.
Several other market analysts and Key Opinion Leaders (KOLs) also agreed on the same, following Mark.eth’s tweet-
Whales Begin to Offload?
The price swings in SHIB, however, do not convey the same message despite token burns and the optimistic opinions expressed by market analysts. One possible explanation for that is that whales are gradually dumping SHIB.
According to data from Santiment, Shiba Inu holders, or those in control of 100 million to 1 billion SHIB, have started selling their tokens, suggesting that the market sentiment may be changing. But whales with more than 1 billion SHIB, however, have mostly stayed dormant. Whales holding between 100 million and 1 billion SHIB indicate a bearish stance as they have begun to withdraw from their holdings, possibly booking profits.
This shift in whale behavior is further validated by on-chain data from Santiment’s Realized Cap HODL Waves, which reveal how long the tokens have been in the same wallets. There is a noticeable downtrend in both short-term holders and long-term holders for SHIB.
Although there have been brief increases in the Realized Cap HODL Waves, neither long-term nor short-term holders have reached their prior peak levels. The 180–365 days HODL Wave reduction indicates that mid-to-long-term holders have already decreased their exposure, as evidenced by the steady decline in their realized cap contribution. However, the 7-30 days category, which frequently represents new trading activity and revived interest, is likewise quiet, suggesting that new demand is not keeping pace with the supplies that mid-sized whales are offloading.
Conclusion
Crypto analyst Mark.eth have pointed out a bullish chart pattern and strong token burning, but SHIB’s recent price movement and on-chain activity point to caution. Declining HODL wave indicators for both short- and long-term holders, along with selling pressure from whales, indicate decreasing confidence.
In the short term, Shiba Inu may continue to experience downward pressure until there is new demand.
