- Shiba Inu has rebounded by 40% since the price decline last week following a massive dump from 1 – 10 million addresses.
- The gradual recovery of price relatively suggests the presence of demand for SHIB in the market.
The second-largest meme cryptocurrency Shiba Inu is steadily recouping the losses incurred last week, following a massive token dump by whales.
Over 31b SHIB dumped last week
Last Thursday, SHIB experienced the largest single-day correction of over 42%, which pulled down the price back to the lower range of $0.000021. The retracement was traced to token dumps by addresses holding at least 1 – 10 million Shiba Inu tokens. Precisely, more than 31 billion SHIB were dumped that day, which is “3.02% of all modest-sized address holdings,” according to an on-chain analytics platform, Santiment.
The impact was strong enough to cause selling pressure which further drove down the price of Shiba Inu. in a recent publication, Cryptopolitan mentioned how many investors and crypto whales have been accumulating millions and billions of SHIB. Although this wave of accumulation is bullish for the price, it also leaves SHIB liable to massive correction should the large holder begin to sell.
Shiba Inu is now rebounding
In our latest Shiba Inu prediction piece, we explained that the price of SHIB might continue trading on the upside over the next day if the price action can break above the current swing high at $0.00003.
During the time of writing, SHIB was seen trading above that level, precisely at $0.00003115, which is a 20% increase in the 24-hours timeframe. Since the drop last Thursday, the price has rebounded by 40%, which indicates the presence of market demand. Many people could have taken the decline as a buying opportunity, and meanwhile, the tokens dumped can be healthy for the market in the long run as it redistributes the supply of whales down to smallholders.