In recent days, the memecoin market has soared due to increased interest from whale investors attracted to its high upside volatility. Prominent memecoins like Pepe and Floki Inu have seen their values skyrocket, nearly doubling in just a week. Shiba Inu has also seen a surge, with significant trading activity from whale investors, as shown by on-chain data. This momentum has empowered buyers to effectively counter bearish trends, keeping the price above key support levels.
Shiba Inu whale activity has spiked this week
Shiba Inu is having a milestone rally this week, hitting multiple records as the coin continues a bullish rise alongside the market. Furthermore, the Shibarium network has witnessed increased activity in the past few days. Remarkably, Shibarium has completed 3.5 million transactions in just two months since its inception.
This was achieved after an extraordinary increase in transaction volume, which rose from 12,690 to 62,669 – a massive increase of 493% in one day. This peak coincided with a rise in the value of Shiba Inu, which rose more than 16% this week.
Data from IntoTheBlock indicates a sharp increase in whale transactions this week, reaching $274 million in value. Additionally, Shiba Inu whales have amassed an impressive $300 million worth of SHIB tokens over the past three months, providing a bullish view on SHIB. This pattern indicates that when these large investors increase their SHIB holdings, the price tends to respond positively.
Despite the significant increase in value, only 17% of SHIB holders make a profit. About 79%, or 1 million addresses, are lost, and 4% are at breakeven. This rising number of loss-making holders could be a bearish sign as some could sell during a new wave to recoup their losses, potentially creating selling pressure.
What’s next for the SHIB Prize?
The recent Shiba Inu rally faced strong selling pressure around $0.00000825, and several buyers exited the market with profits. However, on the bearish side, bulls strongly defended the $0.0000075 level, and SHIB price is now preparing to test its upcoming resistance. At the time of writing, SHIB price is trading at $0.0000078, down more than 1.5% from yesterday’s price.
In the short term, the SHIB price may undergo a period of correction or consolidation. If the price manages to hold without significant losses near $0.0000075, it would indicate that bullish investors are not rushing to exit their positions. This in turn could increase the chances of a recovery and a retest of $0.0000082 resistance. Success in this will push the price towards $0.0000087.
However, bears may turn heads if SHIB falls below $0.0000075. If this happens, SHIB’s price could fall heavily and consolidate within a bearish region of $0.000007-$0.0000066.