In a new analysis that has sent ripples through the cryptocurrency community, renowned crypto analyst Ali Martinez has raised red flags about potential hurdles facing the rising Shiba Inu (SHIB) token. Despite SHIB’s impressive 55% growth over the past three months, Martinez’s concerns revolve around a key hurdle that could pose a threat to the meme coin’s future growth trajectory. Here are the details…
The density of SHIB assets attracts attention
Martinez’s in-depth analysis, drawing on data provided by IntoTheBlock, noted an alarming concentration of 422 trillion SHIB tokens. These tokens are held in approximately 90,000 addresses, all acquired at an initial price of $0.000016. The large volume of SHIB on these addresses raises concerns as it could create a simultaneous wave of selling pressure, driving down the price of SHIB and disrupting the current bullish momentum. Ali Martinez said:
Shiba Inu has seen a 55% increase in the last 3 months and has been relatively quiet in the last altcoin season. While there is potential for future growth, SHIB faces a major resistance zone. Approximately 90,000 addresses hold over 422 trillion SHIB worth $0.000016.
#ShibaInu has seen a 55% increase in the last 3 months, staying relatively quiet during the recent altcoin season.
While there's potential for growth ahead, $SHIB faces a major resistance zone. Nearly 90,000 addresses hold over 422 trillion #SHIB at $0.000016. pic.twitter.com/LE6kpLb1Or
— Ali (@ali_charts) December 9, 2023
The concern arises from the potential consequences of such a large sale. If these large-scale holders decide to liquidate their SHIB holdings, the market could be flooded with tokens and a significant price correction could be triggered. The fact that these addresses are currently holding Shiba Inu at a loss further complicates the issue by increasing the pressure on the overall value of the token.
Is the Shiba Inu’s growth also at risk?
The big question now is whether the Shiba Inu can successfully overcome this upcoming obstacle and continue his growth. Despite the potential threat, SHIB has experienced a commendable 22% increase since the beginning of December and has surpassed the $0.00001 per SHIB level. However, the presence of such a massive concentration of altcoins in whale wallets creates an element of uncertainty, casting doubt on the durability of SHIB’s continued rise. Ali Martinez’s analysis sounds a cautionary note for investors and enthusiasts alike, urging them to closely watch how SHIB navigates this difficult terrain in the coming weeks.
While Shiba Inu enthusiasts and the broader crypto community await developments, SHIB’s future trajectory remains uncertain. Ali Martinez’s analysis is a stark reminder of the inherent complexities of the crypto market and the potential challenges that even a meme coin like SHIB may face in its journey to sustainable growth. At the time of writing, Shiba Inu is changing hands at $0.0000099, a decline of 4 percent.
