This week, the general cryptocurrency market has faced significant headwinds, with major meme coins suffering the biggest impact.
However, the major meme asset Shiba Inu is showing notable changes in investor behavior. Shiba Inu holders are increasing their average holding time, indicating trust in the long-term potential of the asset.
Shiba Inu Holders Take Control, Easing Selling Pressure
On-chain data shows that the holding time of all SHIB coins traded in the past 7 days has surged. According to the cryptocurrency on-chain data platform IntoTheBlock, this metric has increased by 31% during this period.
The holding time of transacted coins measures the average duration a token is held before being sold or transferred. A surge in holding time indicates that investors have chosen to hold onto their coins rather than sell them, suggesting confidence in the future value of the asset.
This is occurring as SHIB's value has been steadily declining over the past few days. It is currently trading at $0.0000146, with meme coin prices down 7% since the start of the week. If SHIB holders continue to increase their holding time, it could reduce selling pressure in the SHIB market and potentially boost its value in the short term.
Additionally, the review period has seen a surge in the number of large transactions related to SHIB, indicating increased activity from institutional investors and whales. According to IntoTheBlock's data, transactions exceeding $10 have significantly increased. The daily count of such transactions has increased by over 200% in the past week, emphasizing the renewed interest of major investors.
Shiba Inu at a Crossroads: Breakout or Further Decline?
The increase in holding time and daily large transactions could mean that SHIB's recent losses may be temporary.
According to Fibonacci retracement tool readings, if these bullish signals persist, the meme coin could break through the downtrend line it has maintained since early December. Overcoming this long-term resistance level could push SHIB's price up to $0.0000166.
Conversely, if the downtrend continues, SHIB's price could fall below the $0.0000140 support level and trade around $0.000010.
