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Shiba Inu Whales Start Buying Despite Key Holders Losing Profitability

Press Releases Crypto News BeInCrypto Shiba Inu Whales Start Buying Despite Key Holders Losing Profitability

Shiba Inu has regained some ground after experiencing a sharp decline in recent weeks. The altcoin is up over 5% in the past 24 hours, attempting to recover investors’ losses.

However, this rebound is largely driven by whale accumulation, as long-term holders (LTHs) continue to face profitability concerns.

Shiba Inu Whales Are Doing Their Best

The MVRV Long/Short Difference has slipped to -3%, signaling a decline in profitability for long-term holders. This metric indicates that LTHs are now at the same profitability level as short-term holders. Such conditions often lead to uncertainty, making investors hesitant to enter new positions.

Extremely negative MVRV values would suggest that short-term holders (STHs) are in profit. This scenario is typically bearish, as these investors tend to sell their holdings quickly.

If selling pressure from short-term traders increases, SHIB’s price could struggle to maintain upward momentum, limiting the potential for sustained recovery.

Shiba Inu Long/Short Difference. Source: Santiment

Despite the challenges faced by long-term holders, whale accumulation has provided some relief to Shiba Inu’s price. Whale address netflows show the first significant inflow in over a month.

In the last 48 hours, addresses holding at least 0.1% of SHIB’s circulating supply added 3.5 trillion SHIB, worth approximately $57 million.

This buying activity suggests that whales expect a price rebound and are positioning themselves accordingly. Their accumulation has helped prevent SHIB from falling further. If this trend continues, whale-driven demand could provide short-term support, potentially stabilizing the meme coin’s price in the coming days.

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Author: Aaryamann Shrivastava

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