TL;DR
- Shiba Inu’s price has dropped 25% over the past week, but essential factors indicate that a fresh rally could be just around the corner.
- One such element is the upcoming Bitcoin halving, which is expected to take place later this week.
Whales on the Move
The value of Shiba Inu has dropped significantly during the current market downturn, with the price decreasing by approximately 25% over the past week. Despite this, there are some encouraging signs that could potentially lead to an increase in SHIB‘s value in the near future.
A significant factor contributing to this is the heightened level of whale involvement, marked by many major investors acquiring a considerable number of tokens.
According to Etherscan’s records, a major investor accumulated more than 107 billion dollars worth of assets from Coinbase on April 14, when SHIB reached a six-week low. Similarly, other large investors followed this trend and purchased vast quantities of tokens in the ensuing days.
Whales’ actions to buy large quantities of SHIB can boost its value. By decreasing the amount available for sale, whale purchases make SHIB more rare, which can increase demand and price. Furthermore, major transactions from investors could foster optimistic market feelings, possibly igniting excitement within the industry.
Abandoning Exchanges
Another element worth observing is the Shiba Inu exchange netflow, which charted massive red candles in the last several days (according to CryptoQuant’s data).
Shifting from centralized exchanges to self-custody methods is considered bullish for the asset’s price since it decreases the immediate selling pressure.
The BTC Halving
To round up, let’s discuss the upcoming Bitcoin halving (expected towards the end of this week). This significant occurrence, which happens approximately every four years, reduces by half the rewards given to miners for verifying transactions on the blockchain.
The reduction in the creation of new Bitcoin results in fewer coins entering the market, potentially causing a shortage. If demand for Bitcoin remains constant or increases, this scarcity could drive up its price.
Previously, after undergoing a halving event, Bitcoin and the larger crypto market have experienced significant growth. Consequently, Shiba Inu could potentially reap similar benefits as well.
For those eager to gain more knowledge about the upcoming event and get ready, please find our informative video linked below.
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2024-04-16 14:12