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.  

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.  

Go to Source to See Full Article
Author: Aaryamann Shrivastava