The price of Shiba Inu (SHIB) has experienced two significant liquidity runs recently, leading to increased volatility and price fluctuations. Additionally, whale activity has surged by an impressive 367%, signaling potential accumulation of the token. Over the past four days, SHIB's price has been on an upward trend, demonstrating strength in the market for this popular meme coin.
These gains follow a liquidity run, during which market makers pushed the price below key support or resistance levels to capture liquidity in those zones. With SHIB currently in an uptrend, it has the potential to extend its weekly gains by an additional 8%, provided market conditions remain favorable. This rise comes amid growing optimism in the broader cryptocurrency market, where analysts are speculating on Bitcoin's potential to reach the $100,000 mark, driven by institutional adoption and increasing demand.
Why Liquidity Runs Benefit Shiba Inu's Price
A liquidity run occurs when an asset's price moves rapidly through key levels due to intense buying or selling pressure. In Shiba Inu's case, two notable liquidity runs occurred between August 22-26 and September 5-8. These events are beneficial for SHIB because they increase volatility, creating opportunities for investors as the rapid price movements break established market structures.
According to data from IntoTheBlock, whale activity surrounding SHIB has surged by 367% in the past 24 hours, with large transaction volumes reaching 3.21 trillion SHIB ($43.52 million). This increase in whale activity—whether through buying or selling—indicates heightened interest in the token. A closer look at SHIB's inflows on September 9 revealed a 164% spike in large holder inflows, further suggesting that whales might be accumulating SHIB in anticipation of future price increases.
This whale activity aligns with the recovery in SHIB's price following the September 5-8 liquidity run, as large investors often buy in significant quantities after major price corrections.
At the time of writing, SHIB's price is down 1.4% over the past 24 hours, trading at $0.00001321. However, the ongoing activity among investors and whales could signal a potential price rise in the near future.
SHIB Price Could Extend Weekly Gains by 8%
Over the past four days, SHIB has displayed notable market strength, with candlestick analysis revealing increasing buying pressure as the coin recovers from its recent liquidity run. Although SHIB has nearly erased its gains from the previous week, the current price action suggests a potential for further growth.
For example, SHIB is now trading within a stable consolidation zone. If the pattern of previous supply-side liquidity runs holds, Shiba Inu could rally to $0.00001450—an 8% increase from its current price. However, resistance around $0.00001360 could limit this rally. Still, the rising volatility and whale activity could lead to a breakthrough at any moment.
On the downside, if SHIB fails to hold above $0.00001310, it may decline to $0.00001270, potentially invalidating the current bullish outlook. In this scenario, the price could form a dreaded head-and-shoulders pattern, which might drive it as low as $0.00001.
Conclusion
Shiba Inu's price continues to show promise despite recent volatility and liquidity runs. With growing whale activity and favorable market conditions, SHIB has the potential to extend its weekly gains by 8%, provided it overcomes key resistance levels. However, if the token fails to maintain its current support, it could face further declines, making the next few days crucial for the meme coin’s price trajectory.
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“