Shiba Inu (SHIB) price attempted to recover from the losses observed in late July. The altcoin showed resilience, but the sustainability of this upward momentum will largely depend on the actions of its most profitable holders.
These long-term holders (LTH) have a significant impact on market direction, and their actions are crucial to SHIB's potential recovery.
Shiba Inu Holders, Maximum Profit Retention
According to HODL Cave analysis, SHIB holders who have held tokens for 18 to 20 months are currently the most profitable, second only to all-time low (ATL) buyers. These long-term investors are seeing mid-range returns of 1.54 to 1.57 times.
This group plays a critical role in SHIB's price movements, and their actions can either support or hinder the altcoin's recovery. These investors, classified as LTH, are most likely to influence SHIB's price through their decisions to hold or sell tokens.
Due to these holders' strong profitability, their actions are essential to SHIB's recovery. As one of the most influential groups in the market, their willingness to continue holding tokens can help support SHIB's price.
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The two-year average coin age indicator tracks token movement over the past two years and shows an upward trend. Sales have been recorded only once in the past two months, highlighting the continued resilience of SHIB's long-term holders.
The rising average coin age indicates that holders are not moving their tokens. This means these investors are reluctant to sell at current price levels. This behavior is crucial for SHIB's recovery, showing that LTHs are not looking to liquidate their positions.
Conversely, a decrease in average coin age indicates increased selling activity. This suggests that holders are moving tokens in response to price fluctuations. The continued patience and resilience of SHIB's long-term holders will help stabilize and support SHIB's price.
Potential Shiba Inu Price Increase
At the time of writing, SHIB is trading at $0.00001366, above the local support level of $0.00001285. The altcoin has not yet reached the significant resistance level of $0.00001435, which is a crucial obstacle for recovery. To continue its upward trend, SHIB must break through this resistance level and maintain momentum above it.
Breaking $0.00001435 is essential for SHIB to move towards $0.00001553. Reaching this level would signal a recovery from July's losses and indicate that SHIB is back on track for additional gains. Support from the most profitable holders will play a crucial role in SHIB breaking this resistance.
However, SHIB could fall below $0.00001252 if it faces strong selling pressure from skeptical holders or retail investors. This would trigger a potential drop to $0.00001182 or lower. This would invalidate the bullish thesis and signal further decline for the altcoin.
