Whale Investors Buy 400B SHIB Amid 10% Price Drop and Rising Burn Rate

Large investors in the Shiba Inu (SHIB) ecosystem have recently acquired 400 billion SHIB tokens amid a price decline, sparking speculation about the token’s potential recovery. The purchase coincided with a 10% drop in SHIB’s value, aligning with broader cryptocurrency market trends. Despite the downturn, whale activity has drawn attention due to its potential implications for future price movements [1].

Analysts have noted that such accumulation by large holders often precedes price rebounds. In this case, the move by SHIB whales suggests a long-term strategy aimed at stabilizing and potentially boosting the token’s value. One early investor, who made $108 million since 2020, was among those who moved significant amounts to Gemini [1]. The transaction, valued at around $10 million, highlights confidence in the token’s fundamentals despite ongoing price volatility.

The recent purchase is also occurring alongside increased token-burning activity. A single transaction burned 600.7 million SHIB, marking a 16,700% increase in the burn rate. This deflationary mechanism reduces supply and is seen as a potential catalyst for price appreciation. On-chain analytics firm Santiment highlighted that large-scale accumulation during consolidation phases often precedes significant price movements [1].

Technical indicators are also pointing to potential bullish scenarios. A classic "cup and handle" pattern has emerged, suggesting a possible breakout. This pattern, combined with whale accumulation and strong support levels, reinforces the idea that SHIB could experience a rally if it breaks above key resistance levels. However, analysts caution that until that happens, the token may remain range-bound or face further dips [1].

While SHIB’s current price hovers near $0.00001272 with minor fluctuations, the overall market sentiment remains cautious. The token has seen a 1.79% drop on August 2 and continues to trade within a narrow range [1]. Analysts emphasize that broader market conditions and investor sentiment will ultimately determine SHIB’s trajectory in the coming weeks.

Despite the mixed short-term outlook, the accumulation of 400 billion SHIB by whale investors, combined with a surge in token burns, has led some analysts to predict a potential recovery for SHIB in the near future. These projections, however, should be treated with caution and not taken as guaranteed outcomes. The market remains highly speculative, and investors are advised to exercise due diligence before making decisions [1].

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Source:

[1] Analyst Predicts Recovery as Whales Purchase 400B SHIB Despite Crashing Price (https://coingape.com/markets/shiba-inu-price-prediction-analyst-predicts-recovery-as-whales-purchase-400b-shib-despite-crashing-price/)

[4] Crypto Catalysts Set to Send Prices Soaring: SHIB Burn Rate Explodes, ETH ETF Inflows Soar, and RTX Nears Softcap (https://blockchainreporter.net/crypto-catalysts-set-to-send-prices-soaring-shib-burn-rate-explodes-eth-etf-inflows-soar-and-rtx-nears-softcap/)

[5] Shiba Inu Poised for Major Upside as Analysts Spot Bullish Cup and Handle Pattern (https://www.cryptoboom.com/shiba-inu-poised-for-major-upside-analysts-spot-bullish-cup-and-handle-pattern/)