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Thousands of SHIB whales dip out as Shiba Inu price hits 21-month low after 15% crash

  • Shiba Inu price slipped to retest September 2021 lows.
  • SHIB is reeling from the largest spike in investor activity since October 2021 due to the June 11 crash.
  • A large portion of selling was attributed to whale activity as cohorts holding 1 million to 10 million SHIB have reduced significantly.

Shiba Inu price has reached new lows over the last few days as the crypto market continues to refrain from marking a recovery. While there were some expectations for the market to decline further in June, it was also expected for investors to ride through the bearishness. However, a major cohort of SHIB holders has decided to choose the other option of exiting the market.

Shiba Inu price fall spooks whales

Shiba Inu price is sitting at new lows after the cryptocurrency fell victim to the crash of June 11, like the rest of the crypto market. Falling by more than 15% in the span of 24 hours, the meme coin hit a 21-month low mark. Trading at $0.00000669, the altcoin is retesting the September 2021 lows but might find some difficulty in recovering immediately.

SHIB/USD 1-day chart

SHIB/USD 1-day chart

Investors, whose activity plays a critical role in the digital asset’s rise and fall, had been skeptical, but the crash of June 11 spooked them to the point where many decided to back off completely.

Most of these addresses belonged to the whale cohort, which also controls about 67% of the entire circulating supply. The addresses holding between 1 million to 10 million SHIB declined by over 28k, signifying bearishness amongst the investors.

Shiba Inu supply distribution

Shiba Inu supply distribution

These addresses could have been among the many investors who actively participated on-chain on June 11. On the day of the crash, the network registered about 12K active addresses, noting a 122% increase from the daily average of 5.4K, the highest since October 2021.

Shiba Inu active addresses

Shiba Inu active addresses

However, despite the selling, investors are still holding out hope for a recovery and looking at the Market Value to Relative Value (MVRV) ratio, Shiba Inu price might be set for recovery. The indicator dropped below the -10% mark, slipping into a zone known as the “opportunity zone”. 

Shiba Inu MVRV ratio

Shiba Inu MVRV ratio

The price, historically, has bounced back the majority of the time the MVRV ratio has dipped into this zone. As low prices generally attract more investors, holders tend to accumulate tokens in order to gain profits once the price recovers. Thus, investors holding out hope for recovery might have an opportunity soon.

Author

Aaryamann Shrivastava

Aaryamann Shrivastava is a Cryptocurrency journalist and market analyst with over 1,000 articles under his name. Graduated with an Honours in Journalism, he has been part of the crypto industry for more than a year now.

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