The euphoria around the Shiba Inu meme-based cryptocurrency has recently escalated into a rapid surge of accumulation. The number of SHIB holders has now reached the highest ever after a peak of 1.22 million. This historical peak comes after a period of strong accumulation in recent times. There was also an increase in whale stocks as strong bullish signals were sent in the crypto industry for the Shiba Inu.
According to the whale tracker WhaleStatistics, the top 500 Ethereum whales hold more than $157.4 million worth of SHIB tokens. In fact, the meme coin now takes up 5.3% of all their holdings. The same platform also confirmed that over 600 billion SHIB tokens were added to the portfolio of the largest Ethereum whales yesterday.
The resurgence of interest among whales should be a strong bullish indicator for the altcoin. However, there was no evidence of this in recent price action, as we will see next.
Earlier this week, traders had a glimmer of hope as whale activity began to show signs of recovery. SHIB whale transaction rates have recorded healthy whale activity over the past seven days.
However, of particular interest is what happened in the last two days. Over the past two days, the concentration of over $1 million worth of whale trades has been higher than in any other period in the past seven days.
SHIB fear ahead?
According to CoinMarketCap, SHIB was trading at $0.00001299 at press time, after falling slightly over the past 24 hours. However, the weekly gain of the token still exceeded 5%. This recent pull helps the Shiba Inu hold 10th place among cryptocurrencies by market capitalization.
While the weekly gains have slowed slightly, the profitability of trading on the MVRV chart continues to decline. The MVRV ratio for SHIB trading has mostly shown red flashes since the end of August. This period precedes the period of greener pastures for the SHIB trade in mid-August.
Another worrisome development may be the volume of SHIB trading in recent days.
Shiba Inu trading volume has fallen nearly 40% in the past 24 hours, according to Santiment. This could mean that the recent surge in whale congestion was nothing more than a façade.
What does the burning portal look like now?
Shiba Inu burn portal Shibburn recently posted an update on the token burn mechanism. According to this Refresh, total was 272 140 724 SHIB tokens have burned over 101 transactions in the last 7 days.
While the burn process continues to wipe out countless SHIB tokens from the supply, the price action of the token continues to show major changes. At the moment, a typical day for SHIB trading seems like a big problem.