Shiba Inu (SHIB) has seen a decline of 12.34% over the last month, reaching a two-week low. Despite facing downward pressure, SHIB buyers are showing renewed interest in the asset, fueling hopes for a potential short-term price recovery.

Price Decline and Market Sentiment

Over the past four days, SHIB has faced a sustained decline, dropping from a high of $0.0000156 to a two-week low of $0.000012. As of writing, Shiba Inu was trading at $0.00001217, marking a 4.02% drop on daily charts. This decline is not just limited to the daily charts but also extends to weekly and monthly performance, with SHIB falling 7.4% and 12.34%, respectively.

This continued downward momentum is reflected in the Stochastic RSI, which has been on a sharp decline since a bearish crossover four days ago, dropping from 100 to 4.23. Despite this bearish trend, many investors are seizing the opportunity to buy the dip, which could signal the start of a potential recovery.

Renewed Buying Activity Signals Potential Recovery

Data suggests that both retail investors and large holders (whales) are actively buying SHIB. According to AMBCrypto’s analysis, there has been an increase in buy orders compared to sell orders, suggesting that SHIB has entered an accumulation phase. This is supported by positive delta and order imbalance, both signaling aggressive buying activity.

Coinglass data reveals that SHIB’s netflow has turned negative, indicating more withdrawals than deposits on exchanges. This suggests that investors are moving SHIB tokens off exchanges, which is typically a bullish signal. In fact, whale activity has been particularly notable, with large holders purchasing 317.63 billion SHIB tokens in a single day—a significant increase from the previous day’s purchase of 148.6 billion SHIB.

Whale Influence and Market Sentiment

The growing activity of whales plays a key role in Shiba Inu’s accumulation phase. Large holders are continuing to increase their SHIB holdings, with outflows from these whales remaining low at just 110 billion SHIB, resulting in a net inflow of 206.9 billion SHIB.

The accumulation by both whales and retail buyers is a sign of strong market confidence, with investors expecting Shiba Inu’s price to rise in the near term. If this bullish sentiment persists, SHIB may have the potential to reclaim the key resistance level of $0.000015.

The Path Forward for SHIB

While the current buying activity signals optimism for a market recovery, the outcome largely depends on whether the bulls can reverse the prevailing downward trend. If the buying momentum continues, SHIB could break the $0.000015 resistance and begin a rally. However, if the trend does not change, SHIB may continue its decline, potentially testing the lower boundary of the channel around $0.0000108.

Conclusion: What’s Next for Shiba Inu?

Shiba Inu’s recent price dip has attracted both retail buyers and whales, indicating that market sentiment is shifting toward the bullish side. The growing accumulation of SHIB suggests that investors are hopeful for a price recovery in the near future. If buyers sustain their momentum, Shiba Inu could regain its $0.000015 resistance level. However, the path ahead remains uncertain, and much depends on whether the bulls can successfully reverse the downward trend. Investors will be watching closely to see if SHIB can break through the resistance and start a rally or if it will face further declines.