This uptick indicates a shift in investor sentiment towards SHIB, drawing considerable attention from the crypto community. The recent whale activity within the Shiba Inu ecosystem has prompted analysts and investors alike to pay close attention to the token, analyzing the driving forces behind these substantial movements.
This surge occurred from February 7 to February 9, with inflows jumping from 422 billion SHIB to 2.31 trillion SHIB. After it cooled off, another notable increase happened from February 11, when inflows escalated from 42 billion to 3.46 trillion SHIB, where it is currently sitting.
The larger outflows mean the token has been scooped off exchanges and into private wallets. This suggests investors are accumulating and, judging by the numbers, price volatility could be expected.
However, most SHIB investors are out of money. A total of 62.49% holders have lost out, in contrast to 34.31%, which are currently enjoying a profit. This could indicate that those who have bought before are holding the token until reaching profitability, further offering SHIB its price support.
Shiba Inu has been in a downtrend from its December 17 peak of $0.000011, falling to $0.0000087 on February 6. Its last uptrend ended at the horizontal resistance. Still, the following low found support at a significant descending trendline, the upper level of the bearish structure from mid-August 2022.
Now struggling between the resistance and support, it is in a tough spot. However, it may have started a larger uptrend from the October 19 low of $0.0000067.
If this is true, then the current downtrend from December is a corrective stage in a new bull phase. With the price coming to the 0.618 Fibonacci retracement, this correction might be over, making the slight rise from February 6 the start of the next major uptrend.
This would need further validation that can come as a breakout above $0.00001, the horizontal resistance zone. If the price manages to do so, we can anticipate a larger rise that could potentially bring the price of SHIB to a high above $0.000017.
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.