Shiba Inu (SHIB), the popular dog-themed meme coin, could be on the verge of a significant recovery, according to technical analyst Kyle Doops. Doops, a regular on the Crypto Banter show, believes a drop in selling pressure suggests whales are accumulating SHIB, potentially driving the price back to the $0.00002 level.
Doops’ analysis hinges on data from CryptoQuant, a leading crypto analytics platform. The data reveals a sharp decline in the net flow of Shiba Inu tokens to centralized exchanges over the past four days. This means more SHIB is moving out of exchanges than entering them, a trend often associated with whale accumulation.
Whales Accumulating SHIB?
On June 28th, for instance, roughly 78.4 billion SHIB tokens were transferred to exchanges, while a significantly larger amount, exceeding 121 billion, were withdrawn. This resulted in a negative net flow of approximately 42.6 billion SHIB.
This trend aligns with observations from the previous day, where selling pressure was effectively neutralized. While nearly 485 billion SHIB tokens were sold on exchanges on June 27th, a larger outflow of 633 billion SHIB countered the selling activity.
The last time SHIB witnessed a positive net flow to exchanges was on June 24th. However, this influx of over 1.01 trillion tokens was dwarfed by the staggering 2.3 trillion SHIB tokens dumped by holders, leading to a price slump to $0.00001642 on Monday.
Shiba Inu Price Stability and Potential Rebound
The consistent negative net flow over the past four days suggests a shift in market sentiment. This outflow could be a key factor behind the recent stability in Shiba Inu’s price. At the time of writing, SHIB is hovering around $0.00001723, reflecting a modest 2% increase in the last 24 hours.
Doops interprets this accumulation trend as a bullish signal. He suggests whales are capitalizing on SHIB’s current low price point, potentially setting the stage for a price surge that could propel the meme coin back to the $0.00002 mark. Notably, reclaiming this level would only require a 16% price increase from its current position.
Also Read: Shiba Inu Fans Breathe Easy: Binance Reiterates SHIB Availability Despite Trading Pair Removal
Bitcoin’s Recovery Bolsters SHIB’s Potential
Adding credence to Doops’ prediction is Bitcoin‘s recent rebound towards the $60,000 region. Historically, the broader cryptocurrency market tends to influence the price movements of altcoins like Shiba Inu. Therefore, a rising Bitcoin price could provide additional tailwinds for a SHIB recovery.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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