TL;DR
Shiba Inu is among the worst-affected cryptocurrencies during the ongoing market decline, with the SHIB price tumbling by 25% weekly. However, some optimistic indicators signal that the valuation might head north in the short term.
One such factor is the increased whale activity, with numerous large investors purchasing a substantial amount of tokens.
As observed on Etherscan, a whale amassed over 107 billion assets from Coinbase on April 14 when SHIB dropped to six-week low. Other big investors also jumped on the bandwagon, buying billions of tokens in the following days.
Such moves from whales can positively impact the SHIB’s value since purchasing a significant amount of assets reduces the available supply on the market, making it scarcer. Large transactions from investors of that type may also influence positive market sentiment, potentially triggering enthusiasm among industry participants.
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.
Last but not least, we will touch upon the approaching Bitcoin halving (scheduled for the end of this week). The ground-breaking event that takes place roughly every four years slashes in half the rewards distributed to miners for validating blocks on the blockchain.
It leads to a decreased rate at which new BTC are created and enter circulation. For its part, the subsequent scarcity can push the asset’s price up (assuming demand rises or stays the same).
Historically, the halving has been followed by a huge resurgence of the primary cryptocurrency and the entire digital asset market, meaning Shiba Inu can benefit, too.
Those willing to learn more about the event and prepare for it, feel free to check our dedicated video below:
