Shiba Inu (SHIB) Altcoin Analysis: The Role of Short-Term Holders in Price Movements

Shiba Inu (SHIB) Altcoin Analysis: Short-term Holders Driving Growth

Altcoin analysis indicates that Shiba Inu (SHIB) is currently trading at $0.000017, reflecting a remarkable 32% price surge over the past month. This growth is largely attributed to increased holdings and reduced selling activities among short-term holders (STHs). However, the sustainability of this rally raises questions, as STHs are known for their quick selling in volatile market conditions.

The Impact of Short-Term Holders

• Shiba Inu’s STHs who hold their coins for less than a month have increased their balance by 20% in the last 30 days.
• This significant accumulation creates upward price pressure as these traders affect a considerable portion of SHIB’s circulating supply.
• Positive price daily active address (DAA) divergence stands at 15.97%, indicating a growing demand for this altcoin.

Long-Term Holder Dynamics

In contrast, long-term holders (LTHs) have diminished their holdings by 0.35%, suggesting profit-taking strategies among this investor group.

The Risk of Volatility

While STHs have propelled SHIB's price, their reactive nature poses a risk. A sell-off from this group could lead to a fall to support at $0.000012, with further declines possible to the August 5 low of $0.000010.

However, should LTHs shift to accumulation, SHIB may aim for $0.000028, underscoring the volatility inherent in altcoin trends.