Shiba Inu’s market value has taken a hit this week, mirroring the downturn affecting the broader cryptocurrency landscape. However, significant accumulation by major investors (“whales”) and informed traders suggests this price dip could be a temporary shakeout, potentially setting the stage for a notable upward surge in the near future.
Technical Analysis Suggests Shiba Inu Price Poised for Potential Comeback
Analyzing the daily price chart, Shiba Inu has declined to a crucial zone of support. The price touched $0.00001178, a level that has proven resilient against downward movement since August.
Encouragingly, this pattern implies the formation of a “triple-bottom” formation, with a resistance hurdle (neckline) situated around $0.00001481. This point aligns closely with a key resistance indicated by the Murrey Math Lines.
Consequently, Shiba Inu’s price is exhibiting potential for a roughly 25% climb towards the $0.00001480 resistance point.
However, a drop below the $0.00001178 level, negating the triple bottom formation, would challenge the SHIB price forecast for 2025. Such a decline might confirm a descending triangle pattern, often a precursor to further price decreases.
Whale Activity and Declining Exchange Holdings Indicate Potential SHIB Upswing
Contributing to the potential for a recovery is the significant accumulation of SHIB tokens by large holders amidst the price decline. Data indicates a substantial increase in holdings among these “whales,” who now control over 100.52 billion tokens, a considerable leap from the previous month’s 38.52 billion. This accumulation represents a purchase of over 62 billion tokens, valued at approximately $745,000, in recent days.
Similarly, “smart money” investors have also aggressively increased their Shiba Inu positions, boosting their holdings by 98% in the past month to exceed 12.46 billion tokens.
Such accumulation by influential investors often signals an expectation of future price appreciation.
Furthermore, the trend of decreasing SHIB token balances on cryptocurrency exchanges reinforces the bullish sentiment. This suggests holders are transferring their coins to personal wallets, signaling a reluctance to sell. Current exchange holdings stand at 282.23 trillion SHIB, a reduction from 290 trillion in August.
Adding to the positive outlook is a recent increase in the rate at which SHIB tokens are being removed from circulation via “burning”. On Tuesday, the burn rate increased by 112%, eliminating millions of tokens and potentially driving up scarcity.
Furthermore, speculation is growing about the potential for a company to apply for a spot SHIB ETF, which could generate significant new demand. The recent guidance from the SEC regarding crypto ETF listings indicates Shiba Inu may meet the requirements for approval given the existence of regulated Coinbase futures products.