Tech

How long can Shiba Inu [SHIB] remain in the long-term bracket? Decoding…

02/03/2023
Bitcoin Ethereum News
  • SHIB’s last year’s performance did not lead to massive dumps by institutional investors and whales.
  • The token had the potential to remain significant in the long term based on the technical outlook.

Shiba Inu’s [SHIB] 2021 disruption of the crypto market was one reason it amassed a lot of holders until press time. Despite trailing in the negative direction for a large part of the last year, institutional investors, including Binance, owned the meme in its portfolio.

Is your portfolio green? Check out the Shiba Inu Profit Calculator

But on 2 February, crypto broker Voyager transferred $3.2 million worth of the token to several exchanges, Lookonchain disclosed. 

SHIB can resist the reds

An action of this magnitude usually implies a bid to sell. Hence, it was possible that these SHIB tokens had left the Voyager exchange wallet or would do so soon. Nonetheless, information from Etherscan showed that the firm still held about 6.8 trillion SHIB. This may as well confirm that Voyager was a long-term believer in the token.

Despite the likely sell offs, SHIB did not succumb to the demand of selling pressure. However, it is noteworthy to point out that the token was initially dumped after the FOMC raised interest rates by 0.25.

However, like the other cryptocurrencies, the downside impact of the announcement only lasted a short while. According to CoinGecko, SHIB exchanged hands at $0.000012 — a 4% increase in the last 24 hours. So, could SHIB still be a profitable long-term asset?

Based on the daily chart, the meme had the potential to price higher than it currently is. This was due to indications from the Exponential Moving Average (EMA). At the time of writing, the 200-day EMA (yellow) positioned above the 50-day EMA (blue). A simplification of this could lead to an expensive bullish stance in the future.

Shiba Inu price action

Source: TradingView

Per the above chart, the Awesome Oscillator (AO) placed SHIB on a bullish momentum but with red bars in abundance, the greens might exit lasting long. Although, there was a bullish twin peak already formed. This could help the SHIB course to remain in buying control.

Could be eternal for these lots

Notwithstanding, SHIB has the attention of whales on lock. According to Whale Stats, the token trend for years might mean that it might never leave the top spot of tokens held by Ethereum [ETH] whales. 

The belief these deep-pockets have in Shiba Inu is why they hold about $597 million worth of it.

Realistic or not, here’s SHIB’s market cap in ETH’s terms

Additionally, Shiba Inu’s market cap was reclaimed and crossed the $6 billion mark. Active addresses on-chain had also increased to 6087 in the last 24 hours. 

Shiba Inu market cap and active addresses

This implied that more users have transacted with SHIB than the day before. Still, SHIB’s long-term relevance depends on how the crypto market trends, the project’s development, and investors’ sentiment.

Source: https://ambcrypto.com/how-long-can-shiba-inu-shib-remain-in-the-long-term-bracket-decoding/