Shiba Inu (SHIB) has experienced a turbulent week, facing a 13% drop in value. Despite this decline, a group of whale investors has shown confidence in the leading meme coin by steadily increasing their holdings over the past few weeks. This article analyzes why the selling activity from SHIB's short-term holders (STHs) could hinder any significant rally in the near future.
Recent assessments reveal that a cohort of whale investors holding between 10,000 and 100,000 SHIB coins has increased their supply over the past month. This group now controls 3.06 billion SHIB, marking a 2% increase from 3.01 billion SHIB held just a month ago.
The decision by these whales to accumulate more tokens seems driven by SHIB's undervalued status throughout September, as indicated by its Market Value to Realized Value (MVRV) ratio. For most of September, SHIB's 30-day and 90-day MVRV ratios were negative, suggesting that the coin traded below its historical value.
On the other hand, SHIB's short-term holders, defined as those who have held their coins for less than 30 days, have adopted a more cautious approach. Their selling activity adds downward pressure, complicating the prospects for a sudden price increase.
In summary, while whale investors are bullish on SHIB's future, the actions of short-term holders present a significant risk to any potential price recovery in the short term.
