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- Amid the latest bearish drawdown, Shiba Inu whales are buying large quantities at a discount.
- Market analysts are optimistic that the price of SHIB will hit historic highs soon.
Shiba Inu (SHIB) whale investors took advantage of a recent price dip to accumulate 4.3 trillion SHIB tokens. This move has raised questions about whether a potential price rebound is on the horizon for the memecoin.
The SHIB Whale Comeback
The price of SHIB plunged below record lows over the weekend, following a 32% decline. During today’s early trading hours, SHIB’s price fell below the $0.000015 mark. This is the first time the memecoin has been trading below this level since September 2024, raising investor concerns.
Amid this decline, on-chain data indicates whale investors are making strategic moves by buying the dip. Whales are described as large investors who buy cryptocurrencies worth over $100,000. Whales range from high-net-worth individuals to institutions like crypto hedge funds and market makers. They usually impact market price because of their large amount of crypto.
The large transaction metric, a key indicator tracked by the blockchain data analytics platform IntoTheBlock, has increased substantially for SHIB. This metric revealed huge transfers from wallets holding at least 0.1% of SHIB’s total circulating supply. These trades usually indicate unusual whale activity since large holders react to market developments.
According to the IntoTheBlock data, SHIB’s large transaction volume rose to 4.3 trillion on Sunday, February 2. For context, this figure stood at just 1.5 trillion on January 31. Therefore, the recent figure demonstrates an almost 200% increase in whale transaction volume.
This sharp rise suggests institutional and large-scale investors are capitalizing on the price dip to accumulate more SHIB at lower prices. Historically, surges in whale accumulation after price declines have helped to stabilize SHIB by absorbing excess selling pressure.
If this pattern holds this cycle, SHIB’s price could find support near $0.000014, preventing further losses.
Factors Causing SHIB’s Price Decline and Forecast
As of this writing, SHIB price was trading at $0.00001444, down 17.62% in the last 24 hours. On the weekly chart, SHIB’s price decreased by 19.5%, indicating a bearish outlook.
SHIB’s unexpected decline comes amid bearish sentiments in the market fueled by the latest trade war developments involving Trump-led tariffs on China, Canada, and Mexico. The uncertainties in the market have sparked a wave of risk-off sentiment, forcing investors to sell speculative assets like SHIB.
Social media reports suggest American consumers are bracing for price increases that may come due to inflation. In reaction, investors are seen moving cash from risky memecoins to more stable assets.
Interestingly enough, SHIB has been impacted harder than other prominent altcoins like Solana (SOL), Chainlink (LINK), and Avalanche (AVAX). While SHIB recorded a 32% decline during the weekend, these cryptocurrencies saw losses below 20%. This shows that SHIB’s decline is not primarily due to macroeconomic circumstances but rather to a combination of pre-existing bearish catalysts.
Amid these bearish factors, the surge in whale movement signals potential price stabilization. Analysts forecast a trend reversal might occur soon. As we covered in our latest report, Solberg Invest forecasted that SHIB could increase to $0.000045. However, the analyst’s prediction is hinged on SHIB bouncing off the $0.000018 support.
