Shiba Inu kicked off the week on a strong note, riding the momentum of a broader market rebound. The meme coin surged to an intraday peak of $0.00001360 on Monday, but it quickly gave up its gains, closing lower at $0.00001295.

The price retracement formed a shooting star candlestick, a bearish signal that often foreshadows further declines. Since then, SHIB ($0.00) has slipped into a sideways trend, correcting more than 3.70% today. This latest dip adds to its extended underperformance, with the dog-themed token now down over 62% from its December high of $0.00003343.

Shiba Inu’s Price Ties Back to Early Whale Movements

A recent Glassnode report reveals that Shiba Inu’s price action strongly correlates with early whale movements. The analysis highlights how these large holders drive market trends based on their accumulation and selling patterns.

Glassnode’s data shows that before Shiba Inu’s historic rally in November 2021, early whales bought around 20% of the total SHIB supply. They accumulated over 117 trillion SHIB in July 2021, and their activities played a key role in confirming the market’s peak.

To track these movements, Glassnode used three market indicators:

1. Herfindahl Index – Measures the concentration of holdings among large and small wallets. A drop suggests whales are selling, signaling a shift in market sentiment.
2. Net Unrealized Profit/Loss (NUPL) – Tracks holders’ unrealized gains or losses. When NUPL rises sharply, it indicates that most holders are in profit, often preceding a sell-off.
3. Cost–basis distribution- shows the average price at which holders acquired their SHIB. This metric highlights key accumulation zones, and while it doesn’t directly signal when whales will sell, it helps identify their potential exit points.

Market Impact: Why Early Whales Still Hold Power Over SHIB

Between January and July 2021, these early whales dominated Shiba Inu’s market activity. Their mass profit-taking in November 2021, when SHIB peaked at $0.00008854, triggered a prolonged bear market until July 2022.

Glassnode’s analysis confirms that whales still significantly influence SHIB’s price action. This pattern isn’t unique to Shiba Inu—similar accumulation and distribution trends appeared in other speculative tokens like Pepe (PEPE ($0.00)), APW, and TSUKA.

Tracking these early adopters’ activities offers valuable insight into market sentiment and helps traders spot potential market tops. When whales made their exit in 2021, SHIB experienced a sharp decline. If a similar pattern emerges again, it could signal another major price shift.

Related article: SHIB All-Exchange Reserve Hits Record Low – What’s Driving the Decline?

Why the Silence from Early Whales?

Unlike previous market cycles, these early SHIB whales have remained largely inactive. Their lack of movement has sparked mixed reactions within the Shiba Inu ecosystem. Some investors interpret it as a sign of confidence, while others worry it could be the calm before another sell-off.

For now, the market continues to watch these early whales closely, as their next move could dictate whether SHIB finally breaks out or sinks further into sideways price action.

The post Early Shiba Inu Whales Are Quiet—Here’s Why SHIB Struggles to Break Out appeared first on FXcrypto News.