Key Insights:
- Shiba Inu price has formed a symmetrical triangle chart pattern on the daily chart.
- Whales have continued their buying spree in a bet that the coin will likely bounce back later this year.
- The amount of SHIB tokens on exchanges has continued falling this year, a sign that investors are not selling.
The Shiba Inu price dropped to a crucial support level as the crypto market crash intensified. SHIB dropped to the support at $0.0000120 on Friday, down by over 50% from its highest level this week. Technical indicators, along with ongoing whale buying and exchange reserves, suggest a rebound.
Shiba Inu Price Could Rebound as Whales Buy and Exchange Reserves Fall
Shiba Inu has been one of the top disappointments in the crypto market this year as it has missed the overall crypto market rally that has pushed Bitcoin, XRP, and Ethereum to their record highs.
The crash happened as demand for the coin remained low as evidenced by the falling volume and futures open interest.
SHIB also crashed as its ecosystem failed to meet expectations. For example, Shibarium, its layer-2 network suffered a major setback when hackers accessed ShibaSwap, its biggest platform. As a result, the total value locked in the ecosystem has plummeted by 30% over the last 30 days to just $1 million, while its transaction volume has also declined.
Still, on the positive side, there are signs that whales are betting on a Shiba Inu revival as their buying spree has intensified. Whales now hold over 184 billion tokens, a 400% increase in the last 30 days.
Increased whale buying is a sign that these investors expect the coin to bounce back over time. In most cases, cryptocurrencies tend to rebound when there is substantial accumulation by whales and smart money investors.
The other major catalyst that investors watch for is the flows of tokens into and out of crypto exchanges. Nansen data shows that Shiba Inu tokens have been moving away from exchanges in the past few weeks, a sign that investors are not selling their tokens.
There are now 276 trillion tokens in exchanges, down from 282 trillion on the same period last month. Most of these tokens have moved out of Bithumb, Upbit, and Crypto.com.
SHIB Burn Rate is Soaring
Meanwhile, more Shibainu tokens are being removed from circulation this week, which is a positive development for the coin.
Data compiled by Shiburn shows that the Shiba Inu burn rate has soared in the last 24 hours. It jumped by 13,120% to over 9.77 million, thanks to one user who transferred over 9 million to a dead wallet.
Data shows that over 410 trillion Shiba Inu coins have been burned over the years, leaving the circulating supply at approximately 584 trillion.
A rising burn rate is beneficial for a cryptocurrency like Shiba Inu, as it reduces the supply. This is especially a good thing when the supply in exchanges is falling as it creates an illusion of scarcity.
SHIB Price Technical Analysis Points to a Big Move Ahead
The daily timeframe chart shows that the Shiba Inu price has been under pressure in the past few months. Most recently, it plummeted from a high of $0.00001750 in May to its current value of $0.000012.
The coin remains below the 50-day and 200-day Exponential Moving Averages, while the Average True Range (ATR) indicator has declined, indicating a decrease in volatility.
Shiba Inu price has formed a symmetrical triangle pattern, whose two lines are about to converge. This pattern indicates that the coin is likely to experience a breakout in either direction.
On the positive side, it has formed a small double-bottom pattern at $0.00001150, indicating a potential rebound in the coming days.
A strong bullish breakout will be confirmed if it moves above the upper side of the triangle pattern. If this happens, the next important resistance level to watch will be at $0.00001750, the highest level in May, which is about 45% above the current level.
A drop below the lower side of the triangle will invalidate the bullish outlook and point to more downside, potentially to the psychological level at $0.000010.
Crispus is a distinguished Financial Analyst at, bringing over 12 years of expertise in cryptocurrency markets, specializing in Bitcoin and altcoins. Renowned for his sharp insights at the nexus of market trends and breaking news, Crispus delivers actionable analysis to empower investors. His work is prominently featured across leading platforms, including BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com, cementing his reputation as a trusted voice in the financial world.
