Ethereum Whales Go Ham On Shiba Inu, Will Current Reversal Trend Hold?

Shiba Inu has been on the up once more as the market slowly recovers from the recent crash. As one of the meme coins still holding strong through thick and thin, it has made an impressive mark in the market, continuing to recover from dips. With the latest crash, it has become a target for large holders, mainly Ethereum whales, who have continued to purchase the cryptocurrency in large quantities.

Ethereum Whales Stock Up On SHIB

Ethereum whales have been one of the largest groups of supporters of meme coin Shiba Inu. These whales hold trillions of SHIB tokens combined running into the hundreds of millions of dollars. They, too, have not been spared from the onslaught that saw the digital asset lose over 60% of its all-time high value. However, they remain deterred as they continue to invest in the token.

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Shiba Inu rotates between the 1st and 2nd position for largest token holdings among the top 1,000 Ethereum wallets, only recently conceding the top position to FTX Token, a fast-growing cryptocurrency. Nevertheless, whale interest in Shiba Inu has not dwindled and is currently the second-largest holding among the whales with an average of $1,364,263 worth of SHIB held by each wallet.

In the last 24 hours, whales have also ramped up their activity in the meme token. It is currently the most traded token among top Ethereum whales for the past day. These whales have collectively increased their average SHIB token balances by 2.63% in the same time frame, and the average value held by each wallet is up 4.44%, according to data from WhaleStats.

Shiba Inu On A Reversal Trend

The January price crash had caused Shiba Inu to touch three-month lows in its wake. Just like the rest of the crypto market, it left SHIB struggling to come up for air as sell-offs were the other of the day. Naturally, the sell-offs had eventually slowed down, though not entirely, and SHIB was once again able to find its footing as it readied for another upward bounce.

SHIB recovers above $0.000026 | Source: SHIBUSD on TradingView.com

The high volatility month of February had presented the perfect opportunity for the digital asset to recover. After trending below $0.00001, Shiba Inu had finally been able to recover, forming a critical daily support zone just above $0.00002.

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This support level presents an opportunity for another small bounce provided the digital asset was able to maintain it. After closing above $0.00002 on Tuesday, it had finally made its way above $0.000026.

However, the battle is far from over for an asset like SHIB that thrives mainly on hype. With the meme coin craze dying out, there needs to be significant buy pressure and acceptance before the cryptocurrency can begin another rally that will see it land above $0.00004.

Featured image from Watcher Guru, chart from TradingView.com