Shiba Inu (SHIB) is showing signs of a potential price reversal after weeks of decline, with key market indicators pointing toward a possible surge. Despite recent losses, including a sharp 12.31% dip in one week and a 26.72% decline over the month, Shiba Inu is starting to exhibit early signs of recovery. This is especially evident in the gradual uptick in price, with SHIB recording a modest 0.41% daily gain. As the market adjusts its strategies, many believe that the cryptocurrency could see a significant rebound in the coming weeks.
Whale activity has been a significant driver of Shiba Inu’s price fluctuations in recent weeks, with large holders often playing a key role in pushing prices down. However, recent data from IntoTheBlock indicates that whale selling has sharply decreased. The number of transactions involving whales has dropped from 130 to just 70 in the last 24 hours, signaling that large holders are reducing their market influence.
This shift in whale behavior is a crucial development, as it implies that the downward pressure on SHIB might be easing. With whales stepping back from active selling, retail traders and smaller investors may now have the opportunity to take charge of the market, driving the price upward.
One key indicator of this change is the drop in the average transaction size, which has decreased to $5,960 from the previous seven-day average of $22,640. This suggests that whales are no longer exerting as much influence over SHIB’s price action, allowing other market participants to gain control.
Shiba Inu’s price chart reveals a pattern similar to one seen in 2024, where SHIB experienced a dramatic rally after breaking out of a descending resistance line. Currently, SHIB is trading within a similar pattern, with strong support at the $0.00002055 level. If history repeats itself, and this support holds, SHIB could potentially see a price surge of up to 99%, reaching a target price of $0.00004095.
This scenario aligns with previous bullish trends observed within the Shiba Inu community, suggesting that the cryptocurrency may be on the verge of a strong upward movement. The 2024 rally, which saw a 156.56% surge, serves as a crucial point of reference, and traders are hopeful that a similar breakout could drive significant gains.
A closer look at the market’s composition shows that both retail and derivative traders are becoming more active in the Shiba Inu market. Retail traders have been showing increasing interest, as evidenced by the rising Open Interest in derivative contracts. In the past 24 hours, Open Interest surged by 28.97%, reaching $226.89 million, indicating a higher number of unsettled contracts and bullish sentiment within the market.
Alongside this, Shiba Inu is seeing a noticeable shift in spot trading activity. Traders are moving their SHIB assets off exchanges and into private wallets, a move often made when traders expect long-term price appreciation. In the past 24 hours alone, approximately $567,000 worth of SHIB has been transferred off exchanges, reflecting growing confidence in the cryptocurrency’s future prospects.
As whales pull back and retail traders ramp up their activity, Shiba Inu appears to be setting the stage for a substantial price reversal. The declining selling pressure from whales, combined with rising interest from retail and derivative traders, is creating an environment conducive to a potential breakout.
The 99% rally projection, while speculative, is based on strong technical indicators and market trends that suggest Shiba Inu may be gearing up for another upward movement. If SHIB successfully breaks past key resistance levels and maintains bullish momentum, it could provide a significant opportunity for investors.
As the market dynamics continue to shift, all eyes are on Shiba Inu to see if it can repeat the 2024 pattern and introduce a strong price rally. While the cryptocurrency space remains volatile, the combination of decreased whale activity, rising retail interest, and technical support signals a promising future for SHIB in the coming weeks.
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