Shiba Inu Whales Accumulate as SHIB Price Recovers 30% From July Dip

Key Takeaways

• Shiba Inu whales continue accumulating SHIB tokens.
• SHIB’s burn rate surged nearly 4000% on July 12.
• SHIB price volatility persists despite positive market indicators.

Shiba Inu (SHIB) is hinting at a potential rally, having rebounded over 30% from its July crash. On-chain data from analytics firm Santiment indicates  that whales are driving this recovery. 

With broader market conditions turning for the better and larger wallets accelerating their buying spree, could a major rally be on the horizon for SHIB?

Shiba Inu Whales Accumulate

According to the Santiment data, the top 150 exchange wallets have seen their SHIB holdings significantly decrease by 5.53 trillion tokens over the past month. Meanwhile, non-exchange wallets have increased their holdings by approximately 6.57 trillion tokens during the same period.

It’s worth noting that investors often keep their holdings on exchanges for easy access when they want to sell. The recent transfers from non-exchange wallets suggest that investors are moving their SHIB holdings off exchanges, reducing the supply available for immediate sale and the selling pressure.

Burn Rate Spikes To 4000% 

On July 12, Shiba Inu’s burn rate  surged by nearly 4000%. The dramatic increase resulted in 72 million tokens being destroyed, bringing the total supply down to 589 trillion tokens, with a cumulative 410.72 trillion tokens burned to date. This reduction in supply is widely seen as a bullish indicator, as it increases SHIB’s scarcity, which could translate into its price driving up. 

The significant increase in the burn rate, driven by the destruction of 71.18 million coins in the past 24 hours, has reduced the total supply to 589.27 trillion coins, with 410.72 trillion tokens burnt to date. This reduction in supply is seen as a bullish factor, increasing the scarcity of SHIB according to the law of supply and demand.

Despite these positive indicators, SHIB’s price performance remains suppressed, even amid rumors of a potential spot ETF. 

Shiba Inu’s marketing lead, Lucie, recently highlighted  the potential for a SHIB ETF, further fueling optimism. She emphasized the benefits of an exchange-traded product for SHIB, sparking excitement for the financial product. 

SHIB Price Analysis 

On March 4, Shiba Inu reached its highest price since November 2021, hitting $0.000045, a 400% increase from its February low of $0.000009. However, the surge was short-lived as the price quickly fell, dropping 60% to $0.000018 by April 13.

Since then, Shiba Inu rebounded from the 0.618 Fibonacci retracement level, gaining 52% from the April low. Despite these gains, the prevailing bearish trend persisted even amid signs of a potential uptrend.

On May 29, SHIB reached a high of $0.000029, only to plunge again, breaking below and making another downturn. This led to a breakout below the local horizontal support zone and a further 56% drop to a low of $0.000012 on July 5. However, it wasn’t long until SHIB’s price snapped back 37% and closed above $0.000145, leaving a large wick on the daily chart.

SHIB’s recovery from the July 5 crash could be its third wave in a corrective ABC pattern, signaling a bullish outlook ahead. Echoing similar positive signs, the daily chart RSI also fell to the oversold zone at 25% on July 4 and was 40% at the time of writing. Should SHIB hold its price above the July 5 low, it could establish the support needed for a reversal. In that case, it could flip the prevailing bearish into a major uptrend and lead to a new yearly high this year, even surpassing $0.00005.