The activity of large Shiba Inu (SHIB) holders surged in the wake of a recent decline that pushed the cryptocurrency below a crucial support level.
The price of SHIB crumbled alongside other cryptocurrencies on Wednesday, following fears of an over-leveraged market and possible denial of spot Bitcoin ETFs in the United States.
The decline pushed SHIB below the psychological $0.00001 price for the first time in weeks, stunting the progress the bulls have made in returning the crypto to its glory days.
However, the latest decline also triggered a resurgence of whale activity on the cryptocurrency. According to on-chain data from IntoTheBlock, Shiba Inu whale activity surged 700%, largely attributed to a significant uptick after yesterday’s decline.
The spike helped Shiba Inu briefly bounce back above $0.00001, as whales capitalized on the market drop to increase their portfolio and lower average entry prices. Yet, it does not undermine the fact that SHIB dropped as low as $0.00000932 in the flash crash.
The cryptocurrency has only managed a recovery back to $0.00000972 at the time of writing, having lost around $400 million in market cap to the upset.
SHIB Eyes Stability As Crypto Market Fights Back
Being one of the hardest hit top coins in the recent market correction, SHIB investors will be hopeful that the decline did not sap the strength out of the project’s resurging ecosystem.
Recall that SHIB gained over 70% in 2023, buoyed by recovering crypto market and ecosystem development such as the launch of Shibarium. Ideally, a bounce back from the recent drop by the broader crypto market would help SHIB’s course.
The increased whale activity might also help stabilize prices in the short term and set the token up for a comeback.
Meanwhile, the first task ahead is retaking the $0.00001 range, a battle the bulls have won in recent times and can repeat if a bullish market momentum returns in the coming days.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
