Shiba Inu: Ethereum whales remain optimistic, but what does SHIB have to show for it?

Shiba Inu [SHIB], the fourteenth-ranked cryptocurrency, has been unable to repay the trust placed in it by Ethereum [ETH] whales. The token, which was an important aspect of offering retail therapy in 2021, had difficulty compensating these whales with a big price hike.

In fact, the inability to generate profits took another turn on November 13, when SHIB hit its lowest 2022 value.


Is this an unprofitable business?

WhaleStats data, on 15 November, showed that the top 5,000 Ethereum whales held $75.28 million worth of the memecoin. According to the whale tracking platform, this represented a $16.59 million difference over second-placed MakerDAO [MKR].

🐳 The top 5000 #ETH whales are hodling

$75,289,824 $SHIB
$58,694,355 $MKR
$50,253,460 $UNI
$43,593,452 $LOCUS
$39,330,252 $BIT
$33,105,058 $BEST
$31,725,680 $LINK
$29,067,831 $CHZ

Whale leaderboard 👇

— WhaleStats (tracking crypto whales) (@WhaleStats) November 15, 2022

This implied that these whales held SHIB  in high regard but has SHIB returned that favor? On the wider outlook, the cryptocurrency was not in any place close to that. According to CoinMarketCap, SHIB’s volume in the last 24 hours was a 30.62% decline.

At $200.19 million, it meant that retail investors did not consider the token worthy enough to engage in transactions. It was even worse that many cryptocurrency seemed to have recorded gains in the last 24 hours with Bitcoin [BTC] and ETH not left out. For SHIB, it preferred to choose the other route with a 0.62% decrease.

Per price action, SHIB position indicated a resolve to remain lower than the current $0.0000092. This was because of the Exponential Moving Average (EMA) position derived from the daily timeframe chart. According to the chart, SHIB’s 20 EMA (blue) positioned itself below the 50 EMA (yellow).

As a result of this stance, SHIB’s potential movement might prevail in bearishness.

Shiba Inu price action

Source: TradingView

However, it seemed like there could be a halt on the reds in the long term. This  was due to the indications of the 200 EMA (orange). Based on the signal from the 200 EMA, SHIB might not last all year with bears in control as there would be some respite.

As for the Awesome Oscillator (AO) at -0.00000138, it clearly gave signs that SHIB’s momentum was in defeatist mode. Hence, it was unlikely to have the token revived soon.

Burns brushed aside

In addition, the SHIB burn rate also felt the impact of the recent decrease. According to Shibburn, the burn rate had shredded 11.85% in the last 24 hours. Although it spiked over 1000% on 14 November, the current state indicated that fewer holders earned from the dead wallet circulation.

Shiba Inu burn rate

Source: Shibburn

In other parts of its chain, SHIB seemed to be succumbing to drawdowns. According to Santiment, its network growth had increased incredibly to 9,406 as of 14 November. However, the same metric was off the top radar at press time.

At this point, it meant the user addition and new addresses were rarely created on the SHIB network. This state meant that ETH might need to wait longer to potentially catch profits from their holdings.

Shiba Inu price and network activity

Source: Santiment

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