Shiba Inu (SHIB) Dips 1.79% but Technical and Whale Signals Hint at 36% Rally Potential

Shiba Inu (SHIB) experienced a 1.79% decline on August 2, trading at $0.000012 amid broader market weakness [1]. However, bullish technical formations and increased whale activity have sparked optimism among traders about a potential rebound. Analyst Joe Swanson identified two key patterns on the SHIB chart: a cup and handle and a double bottom. These suggest a possible price movement toward $0.0000239 if the current support level at $0.0000103 holds [1]. The formation’s validity depends on maintaining this critical support, reinforcing the potential for a 36% rally from the projected resistance level at $0.00001710.

Meanwhile, whale accumulation has surged dramatically. Large investors added 400 billion SHIB in just one day, signaling growing confidence in the token’s future despite the price drop [1]. This surge in netflows suggests that major holders are actively building positions during a period of market uncertainty, a common precursor to upward price movement in crypto assets.

Token burns have also accelerated, with over 629 billion SHIB removed from circulation in a single week. This marks an increase in the burn rate of more than 1,700% and contributes to a significant reduction in the overall supply—over one trillion tokens in recent days [1]. The combination of whale buying and aggressive token burning serves as a bullish catalyst, potentially limiting selling pressure and supporting upward momentum if market conditions stabilize.

Swanson’s analysis highlights that both whale accumulation and token burns align with a potential recovery narrative. These factors, when combined with strong technical setups, create a foundation for a price rebound, though short-term volatility remains a key risk. Market participants are closely monitoring whether the current price level can hold and whether whale activity will translate into broader market adoption.

[1] New Prediction Shows Shiba Inu (SHIB) Could Turn $10,000 Into $500,000 by 2030, One SHIB Rival Might Do It By 2026 (https://cryptodaily.co.uk/2025/08/new-prediction-shows-shiba-inu-shib-could-turn-10000-into-500000-by-2030-one-shib-rival-might-do-it-by-2026)