Sharp Drop in Shiba Inu Accounts! What is the reason?

On-chain data provided by Etherscan identified a sharp decline in the number of Shiba Inu (SHIB) investors. For just one week, the number of wallets holding SHIB decreased by 30,000.

Shiba Inu investor numbers drop sharply

Etherscan data reveals that the number of SHIB investors has decreased significantly over the past eight days. The number of wallets holding SHIB has dropped to 1.25 million since the peak of 1.28 million on November 23. Thus, there was a 2% decrease in the number of investors. Nearly 30,000 wallets have completely emptied their SHIB balance.

Meanwhile, the data was consistent with whale wallets. We’ve seen Ethereum whales reduce their SHIB balances since late November. Currently, Ethereum whales hold a total of $74.47 million worth of SHIB. This translates to 8.03 trillion Shiba Inu (SHIB) on a token basis. In contrast, the SHIB token, which filled whale wallets in the summer, was worth over $500 million. The good news is that the Shiba Inu community continues its voluntary token burns unabated as part of its supply reduction efforts.

Shiba community burned 666 million SHIB

Following Shiba Inu’s burn statistics, Shibburn noted that 666,903,322 SHIB tokens were moved to a dead wallet in November 2022. The meme token community destroyed over 666 million SHIBs in 149 transactions.

Token burning events are key to the Shiba Inu’s ecosystem as it reduces the number of SHIBs in circulation. The reduction in Shiba’s circulating supply has a direct impact on its price. In total, more than 410.38 trillion SHIBs have been permanently removed from the circulating supply of Shiba Inu. Overall, 41% of SHIB tokens were destroyed. It is currently circulating 562.56 trillion on exchanges and users’ wallets.

Shiba Inu price ready to recover?

The harsh conditions of the crypto bear market failed to prevent the Shiba price from recovering. The SHIB price has remained largely stable, especially over the past two weeks. Analysts have identified technical indicators pointing to a recovery on the SHIB chart. Nancy Allen, technical analyst at Coin Republic, predicts that the Shiba Inu price will break the descending triangle pattern. The analyst says the Shiba Inu should attract more buyers during the day to start the recovery.

On the technical side, the RSI is at 46 and struggling to exit neutrality. Analysts say that a momentum difference in your MACD indicator will signal a sudden recovery for SHIB.

As you follow on Kriptokoin.com, Shiba Inu came to the fore in November with a series of partnership news. The second largest meme token continues to move sideways amid this news. SHIB is currently busy protecting the $0.0000090 zone. After all the sales around FTX, it manages to maintain the 13th place in terms of market value.