Despite SHIB collapsing to the $0.000021 psychological support, over 16% of its active Shiba Inu addresses are still seeing profits on their holdings.
Shiba Inu is currently feeling the heat amid the recent market-wide collapse. Following reports of Binance founder Changpeng “CZ” Zhao receiving a 4-month prison sentence in the U.S., the global crypto market downturn deepened, with prices witnessing massive drops.
Bitcoin (BTC) breached below the $60,000 support, trading at the $57,000 territory amid an 8.85% drop in 24 hours. Moreover, Ethereum is also witnessing an 8.93% collapse, while Solana is down 10.85% within the same timeframe.
With the broader market down, Shiba Inu has not escaped the onslaught, equally witnessing a two-digit loss over the last 24 hours. SHIB has also slumped 22.23% in the past week, breaking below multiple support levels to now trade at $0.00002112.
Shiba Inu Active Address Profitability
However, despite this drop, Shiba Inu continues to change hands at a one-year high. As a result, active addresses currently seeing gains on their holdings have not seen substantial declines. Notably, data from IntoTheBlock suggests that Shiba Inu has about 2,980 active addresses over the past 24 hours.
Interestingly, of this figure, about 499 addresses, representing 16.74% of the total active addresses, are currently witnessing gains on their Shiba Inu balances. In addition, about 691 addresses are seeing losses, while 1,790 addresses are at breakeven.
A high count of profitable addresses could signal potential selling pressure as holders decide to realize their gains. On the other hand, a significant number of addresses incurring losses could indicate bearish sentiment or represent potential buying opportunities, where holders might seek to lower their average costs by purchasing additional tokens.
Remarkably, active addresses in profit have continued to see an increase in recent times despite the drop in prices. The increase in active address profitability has prevailed following a major collapse in 2021. In addition, addresses at breakeven have also increased, leading to a subsequent drop in those seeing losses.
Shiba Inu Addresses Buying the Dip
This trend is likely due to a prevailing buy-the-dip campaign amid the sustained price declines. The Crypto Basic has called attention to multiple accumulation moves carried out by Shiba Inu addresses. In February, a whale procured 323 billion SHIB at $0.000009. Late last month, another address amassed 237 billion SHIB amid a price drop.
Data from Santiment also confirms an accumulation campaign among Shiba Inu shrimp, shark, and whale addresses this year. Notably, addresses holding between 10,000 and 10 million SHIB, as well as those holding at least 1 billion tokens, have continued to add to their balances since January.
Remarkably, on-chain data shows that these tiers of addresses collectively procured over 4.55 trillion Shiba Inu tokens in March alone, as the price encountered a rollercoaster ride. Shiba Inu now trades for $0.00002122, awaiting a market resurgence to reclaim $0.00003 possibly.
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