Shiba Inu Could Recover as Whales Buy 400B SHIB Despite Price Drop, Analyst Predicts 36% Surge

The Shiba Inu price has dropped 1.5% in the last 24 hours, to trade at $0.00001201, on a 40.09% decrease in the daily trading volume, to $177,340,916.66.

Shiba Inu Price Falls as Whales Buy Big

Shiba Inu (SHIB) has recently been in the spotlight, even as its price has taken a hit. Over the last few days, SHIB slid as much as 10%, trading down around $0.000012. The price drop followed pressure from the broader crypto market, which also slumped. Despite this negative trend, some large investors have stepped in, purchasing a massive 400 billion SHIB tokens worth about $10 million. 

This show of confidence from major backers is giving many in the market hope that a recovery may soon be on the way. Market experts point out that whale activity often signals the beginning of a reversal in price, especially when big purchases happen during a dip. 

One well-known early SHIB investor, already up over $100 million from previous gains, recently bought even more tokens, showing that long-term supporters still believe in the project’s future. Analysts say when whales start buying while others are selling, it means they expect the price to rebound. 

The strength of SHIB’s community is also seen in recent days, as over 629 billion tokens were burned, removing them from circulation and possibly making each remaining token more valuable.

SHIB Large Holder Netflows Source: IntoTheBlock

Other on-chain data also brings hope. Exchanges are seeing fewer SHIB tokens, as investors move their holdings to private wallets. This means less supply is available to be sold, which could reduce selling pressure and make it easier for the price to move up.

A growing wave of wallet addresses holding significant amounts of SHIB further confirms that investors are choosing to hold instead of sell.

Analyst Sees Bullish SHIB Patterns, Predicts 36% Price Surge

According to analysts, Shiba Inu may be close to making a strong comeback even after the recent dip. One popular analyst, Joe Swanson, highlighted two positive chart patterns taking shape: a “cup and handle” and a “double bottom.”

The cup and handle pattern suggests that although SHIB dropped after reaching $0.00001597, this drop is just a pause before the next stage up. If SHIB can overcome resistance at $0.0000171, analysts say it could jump another 36% to reach $0.0000239, its main target in this recovery cycle.

Shiba Inu Nears Oversold Zone, Reversal Signals Emerge

The daily chart reflects some of these bullish technical patterns. Even though SHIB is currently trading under its 50-day and 200-day moving averages, these areas could soon become support if bulls regain momentum. 

The chart also shows that momentum indicators like the Relative Strength Index (RSI) at 36 are near oversold levels, hinting that a bounce could happen soon. The Average Directional Index (ADX) is at 25, and the MACD indicators are at neutral-to-weak levels, meaning the trend is just forming, but could pick up speed if buyers return.

SHIBUSD Analysis Source: Tradingview

As whales accumulate large amounts of SHIB and burn rates rise, analysts believe there’s a strong chance Shiba Inu could recover from its recent dip. If SHIB can break past resistance and hold key support, a sizeable rally could follow, with targets above $0.0000239 looking possible in the coming weeks.