Tech
Over 16% of Shiba Inu addresses remain profitable despite the cryptocurrency market’s continued decline
The cryptocurrency market has been hit by a severe recession, with major digital assets suffering significant losses. The current situation has been exacerbated by reports that Binance founder Changpeng “CZ” Zhao has received a 4-month prison sentence in the United States.
This news shook the crypto community, further amplifying the negative market sentiment.
The world’s leading cryptocurrency, Bitcoin, has fallen below the critical support level of $60,000. Bitcoin is now trading at around $57,800, marking a decline of 10.085% in the last 24 hours.
Similarly, Ethereum suffered a decline of 8.93%, while Solana, another major cryptocurrency, witnessed a fall of 10.85% in the same period.
Shiba Inu Resilient Investors
Amid this market-wide decline, Shiba Inu (SHIB), a popular meme inspired cryptocurrency, was not spared from the assault. The token has suffered a significant decline of 22.23% over the past week. Breaking through several support levels, SHIB is now trading at $0.00002112.
However, despite this price drop, a notable portion of active Shiba Inu addresses demonstrate resilience, with their holdings still profitable. According to data from InBlockapproximately 2,980 active addresses interacted with Shiba Inu in the last 24 hours.
Surprisingly, of these active addresses, 499, or 16.74%, are currently seeing gains on their Shiba Inu balances.
These statistics highlight the ongoing commitment of many investors, even in the face of unfavorable market conditions. A sizable number of profitable addresses could potentially signal selling pressure, as some holders may choose to realize their gains.
Conversely, a large number of addresses experiencing losses could signal bearish sentiment. It could also present potential buying opportunities for investors looking to reduce their average cost by obtaining additional tokens.
Interestingly, the number of active profitable addresses has recently continued to increase despite the overall price decline. This trend continued after the major market crash in 2021, and the number of break-even addresses also increased. This, in turn, leads to a subsequent decrease in those who suffer losses.
Buy-the-dip cryptocurrency momentum
This resilience among Shiba Inu investors can be attributed to a prevailing “buy-the-dip” mentality. This is evidenced by multiple accumulation movements by addresses at various token holding levels.
For example, in February, a whale acquired 323 billion Shiba Inu coins at $0.000009, while another address accumulated 237 billion SHIB coins amid a price drop in late March.
Data from Santiment further confirms this accumulation trend among Shiba Inu shrimp (which contain between 10,000 and 10 million SHIB), sharks and whales. For context, sharks represent addresses holding between 10 million and 1 billion SHIB, while whales represent those holding at least 1 billion SHIB.
Notably, these address tiers collectively acquired over 4.55 trillion SHIB tokens in March alone, taking advantage of price fluctuations.
Currently, Shiba is trade to $0.00002134 and is down 15% over the past seven days. Shiba Inu investors are looking forward to a market recovery that could push the token above the $0.00003 level.
The technical report editorial policy is focused on providing useful, accurate content that offers real value to our readers. We only work with expert writers who have specific knowledge of the topics covered, including the latest developments in technology, online privacy, cryptocurrencies, software and more. Our editorial policy ensures that each topic is researched and curated by our in-house editors. We maintain rigorous journalistic standards and every article is 100% written by real authors.