764 whales control 94% of SHIB, price eyes $0.00000500 breakout

Whale concentration and retail moves

On July 31, whale wallets executed a significant coordinated maneuver, moving 5.59 trillion SHIB through 5,057 transactions. The average size of these large transfers reached 1.10 billion SHIB per transaction, indicative of substantial repositioning among major holders.

A day later, activity shifted towards retail investors. The number of SHIB transactions increased by 68.75% to a total of 8,517, yet the cumulative volume decreased to 4.08 trillion SHIB. This resulted in a smaller average transaction size of 0.47 billion SHIB. Analysts interpret this pattern as major holders first redistributing their SHIB, followed by retail investors reacting with increased but smaller movements.

Mini dictionary: Etherscan, a leading block explorer and analytics platform for the Ethereum blockchain, allows users to monitor real-time transactions and network statistics, including token movement and wallet activity.

Despite the increase in transaction count, the data underscores the centralization within SHIB’s supply. The top five holders alone account for $2.76 billion out of the total $4.80 billion market capitalization. Meanwhile, 85.54% of wallets, primarily small holders and individuals, hold a combined 0.42% of the supply. As a result, price action in SHIB largely depends on the moves of this concentrated group.

Price consolidation and key scenarios

With the start of August, SHIB traded around $0.00000497, reflecting a 3.26% gain in the past 24 hours. The 14-day Relative Strength Index currently stands at 62.16, suggesting continued momentum but leaving room before the asset enters overbought territory.

At this point, analysts point to two main scenarios for SHIB as activity builds near the $0.00000500 level. Neither scenario is seen as categorically bullish or bearish, but each hinges on the behavior of large holders and the response from retail participants.

Under the breakout scenario, a daily close above $0.00000500 may trigger dormant buy orders and create an opportunity for SHIB to revisit its May highs near $0.00000600.

Alternatively, should whales use the recent uptick in volume as an opportunity for profit-taking by sending SHIB to exchanges, the $0.00000500 threshold could act as resistance and push the price back toward support at $0.00000440.

Only 0.05% of SHIB wallets, or 764 whale addresses, hold 94.64% of the token’s supply, while most individual investors together control just 0.42%.

The outcome in the coming days will depend on whether these large holders choose to maintain momentum and encourage higher retail activity, or use the increased transaction volume as favorable conditions to exit positions after SHIB’s recent 8% rise since Friday.