Shiba Inu (SHIB), the popular meme coin, has defied the recent slump in the cryptocurrency market. While other altcoins have been on a downward spiral since June, SHIB has shown signs of recovery, fueled by significant whale accumulation and technical indicators suggesting a potential price surge.
Following a period of intense selling that dragged SHIB down over 40% from its May highs, the meme coin has shown resilience. As of July 10, 2024, SHIB has clawed back over 30% from its recent lows. This comeback can be attributed in part to a temporary decoupling from the struggling altcoin market.
This decoupling was most evident over the first weekend of July, when SHIB experienced a significant 16% intraday surge, its most impressive daily gain in four months. On-chain data further strengthens the bullish case for SHIB. According to Santiment, the 150 largest non-exchange addresses have been accumulating SHIB tokens at a staggering rate, amassing over 6.5 trillion SHIB in the past month. This significant buying spree has bolstered their collective holdings to over 562 trillion SHIB.
Meanwhile, cryptocurrency exchanges have seen a notable decline in their SHIB reserves during the same period. The 150 largest exchange addresses have shed over 5.5 trillion SHIB since June, bringing their current holdings down to 187.1 trillion SHIB. This trend is corroborated by CryptoQuant’s data, which reveals that exchanges have experienced net outflows of SHIB tokens for the majority of the past month.
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Historically, such a decrease in exchange reserves has preceded price surges for SHIB. The most recent example was in February, before a pivotal 370% rally in early March. The current record low of SHIB tokens in exchange reserves suggests a similar price surge could be on the horizon.
Technical analysts have also chimed in, suggesting SHIB is poised for a significant price increase. Recent reports have outlined potential timelines for SHIB to reach ambitious price targets, and the meme coin could hit those targets sooner than many expect.
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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