Shiba Inu: Whale Accumulation Hints at Recovery on the Horizon?
Shiba Inu (SHIB), the popular dog-themed meme coin, has been exhibiting signs that could signal a potential price rebound shortly. Analyst Doops, citing data from CryptoQuant, highlights a crucial shift in the token’s movement on centralized exchanges.
Reduced Selling Pressure: A Sign of Whale Accumulation?
Traditionally, a surge in token deposits on exchanges suggests selling pressure, potentially leading to a price decline. However, the recent trend for SHIB paints a different picture. Doops observes a net outflow of SHIB tokens from exchanges over the past four days. This signifies that more SHIB is being withdrawn from exchanges than deposited. This trend could be interpreted as a potential accumulation phase by large investors, often referred to as “whales.”
Breaking Down the Numbers:
- Today’s Flow: While roughly 78.4 billion SHIB tokens were deposited on exchanges today, a larger amount, approximately 121 billion SHIB, was withdrawn, resulting in a net outflow of 42.6 billion SHIB.
- Similar Trend Yesterday: The pattern observed today follows a similar trend from yesterday, where selling pressure was countered by a larger outflow of SHIB from exchanges.
- Last Positive Inflow: June 24th marked the last day with a positive net inflow of SHIB to exchanges, indicating a selling spree. However, the outflow that day wasn’t enough to offset the selling pressure, leading to a price dip.
Shiba Inu’s Price Stability and Potential Upturn:
The recent negative net flow of SHIB to exchanges coincides with a period of relative stability in SHIB’s price. At the time of writing, SHIB hovers around $0.00001723, reflecting a modest 2% increase in the last 24 hours.
Doop’s Prediction: A Return to $0.00002?
Based on the current outflow trend, Doops suggests that whales might be accumulating SHIB at its current low price point. This accumulation could potentially propel SHIB back to the $0.00002 price range in the coming days. Notably, regaining this level would only require a 16% price increase from its current position.
Bitcoin’s Rebound: A Supporting Factor?
Doops further suggests that Bitcoin’s recent recovery towards the $60,000 region could bolster SHIB’s potential reversal. The price movements of Bitcoin often influence the broader cryptocurrency market, and a bullish Bitcoin could create a more favourable environment for SHIB to rise.
A Look Ahead: Will the SHIB Pack Howl Again?
While Doops’ analysis offers a bullish perspective for SHIB, it’s important to remember that cryptocurrency markets are inherently volatile. Several factors can influence SHIB’s price, and past performance is not necessarily indicative of future results.
Investors considering SHIB should conduct thorough research, understand the inherent risks involved, and never invest more than they can afford to lose. The coming days will be interesting for SHIB holders, as the token’s price action will reveal whether the whales’ supposed accumulation translates into a sustained price increase.
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Dr. Olajide Samuel juggles the demands of medical studies with a passion for cryptocurrency. A seasoned blogger, Olajide shares his vast global knowledge of the crypto space, offering insights to enthusiasts. Despite his busy schedule, his commitment to crypto remains strong, and he actively seeks ways to contribute to its future.
