Shiba Inu (SHIB) is seeking to reclaim its footing following a robust increase in the third quarter. After climbing 39.3% during this period, SHIB has entered a correction phase, trading around $0.00000516 with a market capitalization of approximately $3.05 billion.
Weekly Closure Becomes Crucial
The key indicator for Shiba Inu in the short term is its 23-week moving average, a crucial technical tool that monitors average prices over a specified period to gauge trend direction. For SHIB to send a strong signal of recovery, it must close the week above this benchmark.
A dip below this level has intensified cautious sentiment in the market. The $0.00000500 threshold is particularly significant, as maintaining SHIB’s market cap around $3 billion hinges on it. Buyers need to push the price back above the moving average by the weekly close to revive bullish momentum; otherwise, the summer lows might be retested.
SHIB’s resurgence depends on buyers regaining ground above the 23-week moving average by the weekly closure.
Whale Wallets Hold Sway Over SHIB Supply
On-chain data hints at a lack of panic despite selling pressure. Over the past 24 hours, investors withdrew 51 billion SHIB from exchanges, transferring them to personal wallets, indicating that some major players view this as an accumulation opportunity.
The Shiba Inu ecosystem’s influential weight resides predominantly within a select group of large wallets. Current figures reveal that 94.6% of all SHIB are controlled by just 798 large wallets, including 310 wallets that belong to dollar millionaires.
The 24-hour withdrawal of 51 billion SHIB from exchanges highlights continued accumulation by significant holders during the downturn.
Potential Supply Squeeze on the Horizon
A contraction in circulating supply is possible if these large wallets refrain from selling, potentially stoking individual investor interest should prices rise again. However, concrete evidence of diminishing week-to-week weakness is necessary before this can occur.
The short-term outlook for SHIB is shaped by the crucial $0.00000500 threshold and the struggle around the 23-week moving average. If large wallets maintain their buying appetite, reaching a $7 billion market cap target becomes plausible; if demand remains weak, the risk of revisiting summer lows persists.
