Shiba Inu (SHIB) has gone through a recent price correction, causing investors to wonder if it can stage a comeback. According to BlockchainShock.com’s market sentiment analysis, the current downturn is due to weak sentiment in the crypto space. The sentiment among investors has turned very bearish. Amidst this decline, a notable trend has emerged: whale accumulation. In this article, we explore the underlying dynamics of SHIB’s price movement. It further looks into how whales are active and flush out possible outcomes from future resurgence.
Understanding the Recent SHIB Price Drop
Technically, SHIB has been on a steady downtrend since March 2024, creating a descending wedge pattern. This correction dropped SHIB’s price by more than 15% from its high earlier in the month. Technical analysis reveals a mixed picture and a neutral outlook at the moment. Yet their intermediate and long-term ratings imply a sell signal for the 1-week and 1-month timeframes. These overall ratings are based on a combination of Moving Averages (MA) and Oscillators. They include variations of SMAs, EMAs and other indicators like the Ichimoku Cloud.
A critical level to watch is $0.000013. Any sustained move below this mark would be worrisome. If this decline is accompanied by rising reserve levels or an increase in the age eaten measure, it can more than offset all the good news. The age destroyed metric follows the flow of previously dormant tokens, with a spike usually indicating a renewed supply side selling pressure. Exchange reserves indicate how much SHIB is stored on exchanges. An increase in reserves is usually a signal that more investors are willing to buy.
The Role of Whale Accumulation
• Amidst the price decline, whales have still been aggressively accumulating SHIB. This accumulation reflects a powerful belief in this large investor. In fact, the whale accumulation of 10.4 trillion SHIB tokens led to a short-lived 9% price surge. Whale activities like these are enough to improve investor sentiments and reignite optimism among the SHIB community.
Whale accumulation could be a bullish on-chain signal. Historically, it has preceded breakouts. It often reflects a sentiment divergence, where whales accumulate despite relatively subdued price action, suggesting they anticipate a price increase. This strategic maneuvering by big players to protect their turf can lead to a tremendous amount of buying power. For example, stories of whales investing millions into various altcoins illustrate how whale manipulation can shape crypto market prices.
Potential Rebound Scenarios and Risk Management
Increased buying from whales could be a potential indicator of SHIB recovering from its present support levels. With the current support level at $0.00001317, maintaining this level is important for any potential price recovery, likely driving Shiba Inu price toward $0.00001435. Analysts are bullish on Shiba Inu’s future. They believe that it might increase by more than 2x, achieving an average price of around $0.0000152 in 2026 if everything goes according to plan.
One needs to be careful about assuming these predictions. The crypto market is inherently volatile, and various factors can influence SHIB's price. Investors should consider the following:
- Market Sentiment: Monitor overall crypto market sentiment, as it can significantly impact SHIB's price.
- Technical Indicators: Pay attention to technical indicators and key support/resistance levels.
- Whale Activity: Track whale activity for potential buying or selling signals.
Even though whale accumulation is a good indication, it does not assure an upcoming price spike. Investors do need to do their homework and approach their risk with appropriate caution. Keeping an eye on exchange reserves, age consumed metrics, and general market sentiment will help you make the most profitable decisions. If bullish sentiment builds and whales keep accumulating, SHIB might be set for a breakout.
