Shiba Inu Whales Buy Big as Long-Term Holders Face Losses

Shiba Inu has shown signs of recovery after recent declines, with a notable increase in whale accumulation. While the token has bounced back slightly, long-term holders are still facing challenges in profitability.

The MVRV Long/Short Difference has dropped to negative levels, indicating that long-term investors are now experiencing similar returns to short-term holders. This situation creates uncertainty, as traders may hesitate to open new positions. If the market turns bearish, short-term investors in profit might start selling off their holdings, increasing downward pressure on SHIB’s price.

Despite these concerns, whale investors have significantly increased their SHIB holdings. On-chain data shows that large holders, controlling at least 0.1% of the circulating supply, have accumulated trillions of SHIB within the last 48 hours. This buying spree marks the first major whale inflow in over a month. Such accumulation suggests confidence in a potential price recovery, helping to prevent further losses.

If this trend continues, whale-driven demand could stabilize the market, offering short-term support for SHIB. However, for a sustained rally, the token needs to surpass a key resistance level and establish it as new support. If successful, SHIB could consolidate above this point, paving the way for further gains.

On the other hand, failure to break through this resistance could keep SHIB trading within a limited price range. A stronger upward move could occur if the meme coin continues to attract whale interest, invalidating bearish concerns and potentially reversing recent losses.

Investors will be watching closely to see whether large holders keep accumulating or if selling pressure makes a comeback.