Shiba Inu (SHIB) is seeing a surge in investor interest and confidence after a whale amassed 220 billion tokens. This accumulation is paired with a notable 4.47% price increase, contrasting with the memecoin’s recent performance.
“This remarkable token accumulation signals a positive shift in market sentiment,” he said.
Shiba Inu (SHIB) is experiencing a significant rally and is recovering from the price drops as whale investors accumulate large amounts of tokens. Will this bull trend continue?
Whale Activity Supports SHIB Price
The recent price increase of Shiba Inu is based on the actions of whales. According to Lookonchain data, a large whale withdrew 220 billion SHIB tokens worth approximately $4.63 million. This transaction indicates a period when the whale remained inactive for five months and then started to accumulate, indicating a possible change in market dynamics. Santiment data also confirms this; in the last week, total whale transactions increased significantly by 2.32 trillion SHIB tokens. Such large accumulations indicate that large investors are expecting market prices to increase and are generally a positive sign.
Change in Market Sentiment
The increase in whale activity reflects a broader shift in market sentiment. Crypto whales typically act using market trends and information analysis. Data suggests that whales have taken advantage of recent price fluctuations to begin accumulating, which is typically the case before an upward move in prices. Also notable are changes in transaction flow, with fewer inflows on exchanges suggesting that SHIB tokens are in greater demand in private wallets.
Shiba Inu's Recovery Process
With the improvement in market sentiment, there is increasing buying pressure on SHIB. At the time of writing, the memecoin is showing a solid bullish trend with positive market analysis data. The strong buying pressure is accompanied by bullish signals on the Relative Strength Index (RSI) and Stochastic indicators, indicating that the momentum is in favor of the bulls. In addition, the circulating supply is decreasing due to whales accumulating SHIB tokens, which is increasing the scarcity of the token. The decreasing supply dynamics are notable with the stock-to-flow ratio rising to 4.87 million tokens. This has historically been associated with price increases if demand increases or continues.
Potential Price Targets for Investors
On the trendline, analysts predict that SHIB could reach a target level of $0.000023 if the buying momentum continues. A successful rally above this level could lead to additional gains of up to $0.000026. However, if investor excitement fades or support levels are broken, SHIB could pull back to levels around $0.000020.