Shiba Inu price dropped together with the rest of the market, shedding 6.5% of its value. However, whale activity skyrocketed to a monthly high, suggesting that large investors may be looking to top up their bags at discount prices. This surge in whale activity coincides with the Shiba Inu community’s efforts to enhance the ecosystem through plans to launch a decentralized autonomous organization (DAO). Meanwhile, retail traders took the opportunity to make a few bucks by shorting the asset. Will SHIB price survive this market onslaught?
Whale Accumulation May Spur SHIBA Price Rise
The activity of Shiba Inu whales increased over the last 24 hours as the price dropped, which means they may have rushed to add more to their portfolios at lower prices. Santiment data reveals a huge spike in the activity of whales with SHIB holdings of $100,000 or more, the largest since July 18.
IntoTheBlock data also shows that large holders’ netflow was positive between August 26 and 27, suggesting that the spike in whale activity detected during the price crash could have been caused by large holders adding more SHIB tokens.
This heightened whale activity takes place against the backdrop of plans for Shiba Inu decentralized autonomous organization (DAO), as announced by SHIB Head of Marketing, “Lucie.”
https://t.co/mj7SRzf6yi
— 𝐋𝐔𝐂𝐈𝐄 (@LucieSHIB) August 24, 2024
According to “Lucie,” the purpose of launching the DAO is to allow holders of the meme coin to vote on future initiatives and have a say in the project’s future direction.
Will Dropping Popularity Affect Shiba Inu Price?
While the SHIB price risks an extended 6% drop following the recent market drop instigated by Bitcoin, whales are rushing in to buy more tokens.
But before that, data from Santiment shows that Shiba Inu’s popularity is dropping as social dominance dropped to 0.268%, a one-year low.
Additionally, there is more negative than positive sentiment on Shiba Inu currently in the market, which may contribute to the drop in Shiba Inu price. This drop in popularity may also be due to the decline registered in the Shiba Inu burn rate.
According to the Shibburn platform, the burn rate has recently dropped to only 261,691 SHIB burned in the last 24 hours. This is a drop from over 7 million SHIB burned just a day before, a nearly 100% decrease.
This decline in the SHIB burn rate, a metric that indicates community engagement and token scarcity, may indicate diminishing enthusiasm among holders. Alternatively, Shiba Inu holders might suspect a price increase and choose not to sacrifice their tokens for burning.
Overall, Shiba Inu remains a strong project with promise. The current price downturn is a market-wide phenomenon, and, similar to August 5, the recovery may be stronger. Shiba Inu price prediction shows in such a scenario, it may surge 35% to $0.00001740.
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