Shiba Inu (SHIB) is weathering turbulent market conditions, yet on-chain data reveals that large whales are taking advantage of the ongoing dip. Despite SHIB’s recent struggles, including a 16.59% drop in December, key support levels are holding, and whales are seizing the opportunity to accumulate.
Whales Buy the Dip Amid Critical Support Retest
SHIB recently retested its crucial support at $0.00002095 but quickly rebounded with a 4.55% intraday gain to hold above $0.000022. However, the token has been one of the hardest-hit assets in the current market collapse, shedding over 32% since December 9.
Despite this bearish sentiment, whale activity has surged. According to IntoTheBlock, wallets holding at least 0.1% of SHIB’s circulating supply recorded a net inflow of 799.32 billion SHIB, worth $17.5 million, yesterday alone. This represents a staggering 7,140% increase from the previous day’s net inflow of 11.04 billion tokens.
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These whales procured 1.21 trillion SHIB ($26.6 million) while selling 413 billion tokens ($9.1 million), resulting in a net inflow peak. Over Q4 2024, net inflows to whale addresses have consistently outpaced outflows by nearly five times, indicating sustained confidence in SHIB’s long-term potential.
Exchange Reserves and Accumulation Trends
Data from CryptoQuant highlights a consistent decline in SHIB’s exchange reserves, which dropped from 140.87 trillion SHIB on December 7 to 135.74 trillion currently. This decline underscores ongoing accumulation by whales, even as market sentiment remains bearish.
Historical trends further validate this pattern. In October, a whale acquired 83.3 billion SHIB, while another purchased 397 billion tokens in August during a market rebound attempt.
What Lies Ahead for Shiba Inu?
Technically, SHIB must defend its breakout above a symmetrical triangle pattern formed over several months. The asset is currently trading at $0.00002233, up 3.81% this week. To maintain bullish momentum, SHIB needs to defend the Fibonacci 38.2% level at $0.00001942 and avoid falling back into the triangle.
While the broader market remains uncertain, the renewed interest from whales and declining exchange reserves suggest optimism for SHIB’s recovery. If bulls successfully defend current levels, SHIB could be poised for a rebound, setting the stage for long-term growth.
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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