Despite recent price pullbacks, Shiba Inu (SHIB) continues to attract significant interest from crypto whales and institutional investors. While retail participation wanes, long-term holders and large-scale buyers are doubling down, signaling potential upward momentum.
Here’s why SHIB’s fundamentals suggest a rebound:
1. Whale Activity Skyrockets: A 2,952% Surge in Accumulation
- On May 7, 2025, SHIB whale inflows spiked by 2,952%, jumping from 238.91 billion SHIB to 6.42 trillion SHIB in a single day.
- Large Holder Netflow surged over 6,050%, indicating institutional repositioning.
- Market Insight: “Whale accumulation often precedes price rallies,” notes Jane Smith, Market Strategist at Digital Assets Group.
👉 Why whales are betting on SHIB now
2. Bullish Technical Breakout: Falling Wedge Pattern Confirmed
- Current Price: $0.00001486 (+11.86% in 24h).
- Key Resistance: 200-EMA at $0.00001612**; breakout targets include **$0.00002400.
- RSI at 66.72: Strong momentum without overbought risks.
3. Burn Rate Up 4,833%: Scarcity-Driven Momentum
- SHIB’s 24-hour burn rate surged by 4,833.89%, reducing circulating supply.
- Burns enhance scarcity but require combined institutional demand to drive sustained price action.
4. Derivatives Market Heats Up
- Open Interest: Rose 20.57% to $200.90 million.
- Trading Volume: Increased 81%, reflecting speculative interest.
- Short squeezes likely as liquidations flush out bearish positions.
5. Exchange Reserves Drop 6.57%: Supply Tightens
- Net outflows surged 1,558%, moving SHIB from exchanges to private wallets.
- Lower liquidity = sharper price reactions to demand spikes.
6. Bitcoin Correlation Remains High (0.84)
- SHIB’s price still tracks Bitcoin’s macro trends.
- Decoupling potential depends on Shibarium adoption and ecosystem growth.
Conclusion: Is SHIB Gearing Up for a Rally?
- Whale accumulation, technical breakouts, and burns create a bullish trifecta.
- A push past $0.00001600** could trigger a run toward **$0.00002400.
FAQ Section
Q1: Why are whales buying SHIB during a price drop?
A1: Whales often accumulate during dips, anticipating long-term gains from ecosystem developments and burns.
Q2: What’s the significance of SHIB’s burn rate?
A2: Burns reduce supply, increasing scarcity—a key driver for meme coin valuation.
Q3: How does SHIB’s correlation with Bitcoin affect its price?
A3: High correlation means SHIB often follows Bitcoin’s market trends, though ecosystem growth could reduce this tie.
👉 Explore SHIB’s latest market movements
### Key SEO Keywords:
- Shiba Inu (SHIB)
- Crypto whales
- Falling wedge breakout
- SHIB burn rate
- Derivatives market
- Bitcoin correlation