Ethereum News Today: Shiba Inu Price Nears Breakout as Whale Activity Dries Up

Shiba Inu (SHIB) is at a potential inflection point as whale activity wanes and the price shows signs of consolidation. The token dropped over 3% on Sunday, reversing a portion of the gains seen earlier in the week after Federal Reserve Chair Jerome Powell’s remarks at the Jackson Hole Summit [1]. This volatility reflects broader uncertainty in the meme coin space, with SHIB currently trading at around $0.00001328 and maintaining a market capitalization near $8 billion [2].

Smart money and whale movements—traditionally strong indicators of market sentiment—have shown a clear decline in August. Nansen data reveals that savvy money investors now hold 40.42 billion SHIB, down from the July peak of 48.6 billion, while whale holdings have also dipped from 47.6 billion to 45 billion [1]. These trends suggest that key stakeholders are either locking in gains or waiting for a clearer market direction, particularly after SHIB’s sharp 60% decline from its November 2023 highs.

The reduction in whale activity aligns with a broader slowdown in the Shiba Inu ecosystem. Shibarium, the project's layer-2 network launched in 2023, has seen a drop in activity, with total value locked falling to $1.79 million. Additionally, there is no stablecoin activity in the network, and only 17 DeFi protocols remain active, including Shibarium, WoofSwap, ChewySwap, and DogSwap [1]. This lack of ecosystem growth raises questions about the token’s utility and long-term value proposition, particularly as it was initially designed to transition Shiba Inu from a meme coin to a more functional asset.

From a technical perspective, SHIB has been consolidating along the 50-day and 100-day Exponential Moving Averages, with low volatility reflected in its Average True Range. The price has formed a symmetrical triangle pattern, where a breakout—either bullish or bearish—is likely as the trend lines converge. A bullish break above $0.00001600 could signal renewed interest, while a drop below $0.00001015 would reinforce bearish sentiment [1].

Analysts note that the absence of whale-driven momentum often precedes a price shift. In SHIB’s case, the lack of large-scale buying or selling activity could indicate that major holders are in a holding pattern, waiting for macroeconomic clarity or a catalyst to drive the next move [3]. The broader crypto market appears similarly cautious, with Ethereum also showing signs of consolidation and potential reversal [3].

With whale activity drying up and technical indicators pointing to a possible breakout, SHIB is at a critical juncture. The coming weeks will likely determine whether the token can break out of its current range or slip further into consolidation. Investors are closely watching for signs of renewed strength, particularly if SHIB can retest and hold above key support levels.

Source: [1] https://crypto.news/shiba-inu-price-nears-big-move-as-whale-activity-dries/

[2] https://www.barchart.com/story/news/34348169/race-to-100b-market-cap-which-meme-coin-gets-there-first-pepe-coin-layer-brett-or-shiba-inu

[3] https://thetradable.com/crypto/eth-ethereum-price-prediction-ready-to-pop-as-whales-drop-114m-in-secret-buying-0