Shiba Inu (SHIB) investors are demonstrating increasing confidence, as reflected in a notable shift in their behavior. As prices of many assets plummet, Shiba Inu holders have been raising their average holding time, signaling faith in the asset’s long-term potential despite a general market slump. This rise in holding time offers insight into the mindset of SHIB investors and hints at possible future trends for the cryptocurrency.

Selling Pressure Eases as Shiba Inu Holders Take Control

On-chain data shows a significant surge in the holding time of Shiba Inu coins transacted over the past seven days. According to data from IntoTheBlock, this metric has jumped by 31% during this period, marking a clear increase in the average duration for which Shiba Inu holders are retaining their assets before making a transaction. Holding time refers to how long an asset’s coins are typically kept before being sold or moved, and a spike in this metric often signals investor confidence.

This increase in holding time is occurring amid a steady decline in SHIB’s value. At the time of writing, the coin is trading at $0.0000146, which is a 7% decrease since the start of the week. However, the fact that investors are choosing to hold rather than sell suggests that many believe in the long-term prospects of SHIB, despite the short-term market decline. This growing confidence could be a crucial factor in reducing selling pressure, which has been a key force in the downward movement of SHIB’s price.

When investors retain their positions, it prevents excessive sell-offs, which could help stabilize the price and even facilitate a potential rebound. This trend could support a possible price recovery if market sentiment improves and holders maintain their belief in Shiba Inu’s future potential.

Large Transactions Indicate Growing Institutional Interest

In addition to the increase in holding time, there is also a surge in large transactions involving Shiba Inu. According to the same data from IntoTheBlock, large transactions—defined as those exceeding $100,000—have risen by over 200% in the past week. This increase suggests heightened interest from institutional players and large investors, such as whales, who are beginning to accumulate more SHIB.

The uptick in large transactions is notable because it typically indicates that institutional investors are re-entering the market or increasing their stakes in a particular asset. For Shiba Inu, this could be seen as a positive sign that the coin is attracting renewed attention from large players who are positioning themselves for a potential price breakout. If these large investors continue to show interest in SHIB, it could provide the catalyst for a positive shift in its price momentum.

Shiba Inu at a Crossroads: Breakout or Further Decline?

Shiba Inu is currently at a critical juncture. Despite the recent decline in price, the rise in holding time and large transactions suggests that a potential rebound is on the horizon. If this bullish sentiment continues, Shiba Inu could break above a significant long-term resistance level that has held the price in decline since early December. The breach of this resistance could push SHIB’s price toward $0.0000166, marking a potential recovery in value.

Conversely, if the market remains bearish and the price continues to drop, there are risks that SHIB could fall below key support levels. The next major support zone for Shiba Inu lies at $0.0000140, and if this level is breached, it could lead to further declines, with the price potentially testing lower levels at $0.000010.

Conclusion

Shiba Inu’s recent market behavior presents a mixed but intriguing picture. While the coin has faced a decline in price, the increasing holding time among investors and the rise in large transactions indicate a level of confidence and belief in the asset’s long-term potential. If these trends continue, Shiba Inu could experience a price recovery, with a potential breakout above its recent resistance levels. However, if market sentiment worsens and selling pressure mounts, the coin may struggle to maintain its current support levels, and further declines may follow. Investors will need to keep an eye on these key metrics to gauge Shiba Inu’s next move in the market.