The crypto market has been gripped by a severe downturn, with major digital assets experiencing significant losses. The ongoing situation was aggravated by reports of Binance founder Changpeng “CZ” Zhao receiving a 4-month prison sentence in the United States.
This news has sent shockwaves through the crypto community, further amplifying the market’s negative sentiment.
The world’s leading crypto, Bitcoin, plummeted below the critical $60,000 support level. Bitcoin now trades around $57,800, marking a 10.085% drop in the past 24 hours.
Similarly, Ethereum suffered an 8.93% decline, while Solana, another prominent crypto, witnessed a 10.85% collapse during the same period.
Shiba Inu’s Resilient Investors
Amidst this market-wide decline, Shiba Inu (SHIB), a popular meme-inspired cryptocurrency, has not been spared from the onslaught. The token experienced a significant drop of 22.23% over the past week. Breaching multiple support levels, SHIB now trades at $0.00002112.
However, despite this price decline, a notable portion of Shiba Inu’s active addresses demonstrates resilience, with their holdings still in profit. According to data from IntoTheBlock, approximately 2,980 active addresses have interacted with Shiba Inu over the past 24 hours.
Remarkably, out of these active addresses, 499, representing 16.74%, are currently witnessing gains on their Shiba Inu balances.
These statistics highlight the unwavering commitment of many investors, even in the face of unfavorable market conditions. A substantial number of addresses in profit could potentially signal selling pressure, as some holders may opt to realize their gains.
Conversely, a large number of addresses sustaining losses could signal bearish sentiment. It could also present potential buying opportunities for investors seeking to lower their average cost by obtaining additional tokens.
Interestingly, the number of active addresses in profit has recently continued to rise despite the overall price decline. This trend has persisted following a major market collapse in 2021, and the number of addresses at breakeven has also increased. This, in turn, leads to a subsequent decrease in those experiencing losses.
Buy-the-Dip Crypto Momentum
This resilience among Shiba Inu investors can be attributed to a prevailing “buy-the-dip” mentality. This is evidenced by multiple accumulation moves by addresses across various levels of token holdings.
For instance, in February, a whale acquired 323 billion Shiba Inu coins at $0.000009, while another address accumulated 237 billion SHIB coins amid a price decline in late March.
Data from Santiment further validates this accumulation trend among Shiba Inu shrimp (holding between 10,000 and 10 million SHIB), sharks, and whales. For context, Sharks represent addresses holding between 10 million and 1 billion SHIB, and whales represent those having at least 1 billion SHIB.
Notably, these tiers of addresses collectively acquired over 4.55 trillion SHIB tokens in March alone, capitalizing on the price fluctuations.
Currently, Shiba is trading at $0.00002134 and has been down 15% in the last seven days. Shiba Inu investors eagerly await a market resurgence that could propel the token back above the $0.00003 level.
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