TLDR
Shiba Inu (SHIB) experienced a 32% price drop over the weekend, reaching a five-month low of $0.000014
Whale activity surged with transactions increasing from 1.5T to 4.3T SHIB, suggesting large investors are buying the dip
Technical analysis points to potential recovery if SHIB reclaims the $0.000015 level, with possible upside to $0.000018
The price decline occurred amid broader market instability related to trade war developments
Despite the sharp drop, increased whale accumulation could provide price support around $0.000014
The popular cryptocurrency Shiba Inu (SHIB) has captured market attention as its price experienced a substantial decline over the weekend, dropping 32% to reach $0.000014. This marks the lowest price point for the token in five months, dating back to September 2024. However, amid the price downturn, blockchain data reveals a notable surge in whale activity, suggesting large investors are actively accumulating the token.
The weekend sell-off came as broader market instability took hold, driven by recent developments in international trade relations. The situation has been particularly influenced by new tariff policies targeting China, Mexico, and Canada, leading many investors to reduce their exposure to more speculative assets.
Data from blockchain analytics platform IntoTheBlock shows a dramatic increase in large transactions, rising from 1.5 trillion SHIB on January 31 to 4.3 trillion SHIB by February 2. These transactions, which track transfers from wallets holding at least 0.1% of SHIB’s total circulating supply, serve as a key indicator of whale activity in the market.
The increase in whale transactions during the price decline suggests that institutional and large-scale investors view the current price levels as an attractive entry point. Historically, such patterns of whale accumulation during market downturns have helped stabilize prices by absorbing selling pressure.
SHIB’s price movement has been more pronounced compared to other major alternative cryptocurrencies. While tokens like Solana (SOL), Chainlink (LINK), and Avalanche (AVAX) saw losses under 20%, SHIB’s 30% decline indicates that factors beyond general market conditions may be at play.
Shiba Inu Price on CoinGecko
Technical analysis of SHIB’s price action suggests the formation of a corrective ABC pattern, with the recent drop potentially marking the completion of Wave C. This technical structure often precedes an upward price movement, particularly when supported by increased buying activity from large holders.
The $0.000013 price level has emerged as a crucial support zone, having previously served as a point of price reversal. Market observers note that a recovery above $0.000015 could generate momentum for a move toward $0.000018 in the near term.
Recent social media activity indicates growing concern among U.S. consumers about potential inflation-driven price increases. This sentiment has contributed to a shift away from more volatile crypto assets as investors seek safer alternatives.
The MACD (Moving Average Convergence Divergence) indicator, while still in negative territory, shows early signs that selling pressure may be weakening. The indicator’s signal line has begun curving upward, suggesting a possible shift in market momentum if SHIB maintains stability above key moving averages.
Trading volumes have increased substantially during the price decline, with exchange data showing heightened activity across major trading pairs. This surge in volume often accompanies major price movements and can signal a potential turning point in market direction.
Key support levels at $0.000014 and $0.000013 have become focal points for traders and analysts. These price points represent critical areas where buying pressure needs to hold to prevent further price deterioration.
The market currently faces several risk factors that could influence SHIB’s price trajectory. Any escalation in U.S. trade tensions or deterioration in broader crypto market sentiment could put additional pressure on the price.
Should bearish momentum continue, a break below $0.000013 could trigger further selling, potentially pushing the price toward the $0.000010 level. This scenario would likely invalidate immediate bullish reversal possibilities and could lead to an extended period of price consolidation.
The most recent data shows the price stabilizing around $0.000014 as of Monday, February 2, with whale transactions continuing to show elevated levels of activity.
The post Shiba Inu (SHIB) Price: Attracts Major Whale Activity Following 32% Weekend Price Correction appeared first on Blockonomi.