The most recent data show that the self-proclaimed Dogecoin killer has almost 1.7 million holders. However, less than 1,000 wallets own the vast majority of the supply: a concentration hard to ignore and which raises eyebrows.

Shiba Inu’s price has been in a major decline over the past several months, yet some analysts believe a rebound could be on the way while certain factors support their bullish outlook.

How Many Whales and Shrimps?

Earlier this month, the total number of SHIB addresses reached an all-time high of 1,676,535 after a sudden one-day increase of 75,000 new holders. The figure kept climbing and currently stands at 1,678,502.

According to Etherscan, nearly a million of those are investors known as shrimps: wallets holding up to $10 worth of the meme coin. The second-largest group is crabs (477,871), who own between $10 and $100 in SHIB. Coming up next are fish, dolphins, and sharks.

Interestingly enough, there are only 703 whales (addresses that hold more than $100K worth of the token each). They make up only 0.04% of the total figure but control staggering 94.5% of Shiba Inu’s supply.

Such an extreme concentration means that theoretically a small group of investors could move the market with their actions. A coordinated sell-off, for instance, could lead to a substantial price crash, while sudden accumulation might have the opposite effect.

SHIB at a ‘Critical Stage’

As of press time, the token is worth around $0.000004235 (per CoinGecko), translating into a massive 72% decline on a yearly scale. X user CRYPTO SHERIFF noted that the asset has been consolidating below a 5-year downtrend, arguing that it is in “a critical stage” which could actually be a precursor to a huge pump.

“There is an unwritten rule in crypto: the longer the consolidation lasts, the bigger the breakout! SHIB is at a critical stage! Unless there is a market downturn in the coming days, we could see a new rally for SHIB,” they stated.

The declining amount of tokens stored on exchanges reinforces the bullish scenario. According to CryptoQuant, there are now approximately 86.2 trillion SHIB held on centralized platforms, a new five-year low that typically reduces immediate selling pressure.

At the same time, there are some warning signs. X user SHIBMortal said that analysts have spotted a 91% match between SHIB’s recent performance and the 2023 bearish pattern, which could lead to a 20% drop to the $0.0000032–$0.0000033 range.

Source: CryptoPotato