The Shiba Inu (SHIB) token is witnessing renewed interest from major investors after experiencing a significant downturn of 60% from its recent peak. Despite this decline, the altcoin shows signs of recovery, attracting so-called ‘whales’ who are keenly adding to their holdings. Analysis of technical indicators and on-chain data suggests that the current market trends may be indicative of a strategic accumulation phase. As the short-term future of SHIB remains uncertain, the medium-term prospects appear to be improving.
What Do Technical Indicators Reveal?
Currently, Shiba Inu is trading just above the $0.0000134 mark, but below the crucial 200-day moving average. The largest technical resistance is the 100-day moving average, hindering any substantial price increase. While SHIB’s price action hasn’t yet shifted towards a bullish trend, there are ongoing fluctuations around key levels.
April’s recovery underscores SHIB’s resilience, with the Relative Strength Index (RSI) sitting at 56, neither overbought nor oversold. This neutral position hints at a period of consolidation, potentially leading to a significant movement. On the buying and selling side, volumes lack a clear direction, though substantial accumulated interest from major players is noticeable.
Is Whale Accumulation Indicating a New Trend?
Recent data indicates that over the last 90 days, wallets with large SHIB investments have grown by 24.14%. Notably, purchases by these investors increased by 8.78% in just the past week, while the exit rate of major investors fell drastically, showing their intent to strengthen their positions instead of cashing out.
Wallet distribution patterns reinforce this narrative. Addresses holding between $100,000 and $10 million in SHIB have seen respective gains of 16.2% and 6.45%. This growth signals a commitment from serious investors eyeing the long haul rather than short-term profits.
Conversely, there has been a slight decline in addresses holding between 100 million and 1 billion SHIB, implying a reallocation of assets to more stable hands. Such trends are typically precursors to price stabilization and a reduction in speculative activity.
Concrete insights from this data include:
- Significant increase in whale investments by 24.14% over 90 days.
- Investor exit rates have decreased by more than 62% within a month.
- Addresses holding substantial SHIB amounts are on the rise, indicating long-term investor interest.
- Signs of potential price stabilization as asset redistribution occurs.
As major players continue to demonstrate notable interest in Shiba Inu, the altcoin seems poised for potential price stabilization and long-term growth. These ongoing shifts in investor behavior might just pave the way for a more stable economic future for SHIB within the cryptocurrency market.
