Shiba Inu’s price has retreated into a technical bear market, having experienced a significant decline of 20% from its peak this month.
Summary
- The Shiba Inu price has developed a cup-and-handle pattern.
- Recent data indicates that whale investors are actively accumulating SHIB tokens this month.
- The amount of Shiba Inu tokens available on exchanges has drastically reduced.
As of Thursday, Shiba Inu (SHIB) was priced at $0.000013, marking a decline from this month’s high of $0.00001600. However, it is still approximately 32% above its lowest point so far this month.
Whale Accumulation Trends for Shiba Inu
Data from Nansen suggests that whale investors have been on a buying spree, accumulating SHIB tokens over recent months—an indicator that they anticipate a bullish trend ahead. Currently, these whales possess over 109.69 billion tokens, which is a considerable increase from a low of 105 billion tokens earlier this month. Historically, such accumulation by large holders often signals an upcoming price rebound.
A notable aspect of this acquisition surge is that it coincides with a significant reduction in SHIB token supply on exchanges. The total amount of Shiba Inu coins on both centralized and decentralized exchanges has fallen from 283 trillion to 277.37 trillion tokens this month.
Typically, a decline in exchange balances indicates that investors are removing their tokens for self-custody, suggesting they are anticipating a price recovery. Historically, when tokens see an upward trend in outflows from exchanges, there is a corresponding price surge.
Additionally, another crucial factor influencing the SHIB price is Ethereum’s potential surge near the $4,000 mark. Ethereum has witnessed a remarkable rise of 175% from its lowest point this year, with technical indicators and ETF inflows hinting at further gains. Historically, SHIB tends to perform well during Ethereum’s bullish phases.
However, there are some risks on the horizon for Shiba Inu’s price. One concern is that the ecosystem’s layer-2 network, Shibarium, has shown stagnant growth, with total asset holdings declining to just $2.47 million—a 1% decrease over the last 30 days. This stagnation is notable, especially given that many other chains experienced asset growth in July, with the combined Total Value Locked (TVL) rising to $282 billion.
Another potential risk for Shiba Inu’s price is the recent drop in futures open interest observed in the past few weeks.
Technical Analysis of Shiba Inu’s Price
Current technical indicators suggest that SHIB’s price may be on the verge of a significant rebound, correlating with the “whale accumulation” trend. The asset has formed a cup-and-handle pattern, characterized by an upper border around $0.00001600 and a lower boundary at $0.000010. Notably, the lower boundary corresponds to a double bottom formation, with the neckline positioned at $0.00001760.
The recent price dip is perceived as the handle phase of the cup-and-handle pattern. Forecasting based on the cup’s depth—measured at 36% from its peak—results in a target price of approximately $0.00002185, which would represent an increase of over 70% from current levels.
