Shiba Inu Struggles Despite 400% Jump in Whale Transactions: What to Expect from SHIB Price Next?

Shiba Inu Struggles Despite 400% Jump in Whale Transactions: What to Expect from SHIB Price Next?

Originally published on Coinpedia Fintech News

Introduction

During Bitcoin's ascent to its May peak of $71.1K, the meme coin sector emerged as a highly profitable investment, with top tokens by market cap yielding returns exceeding 40%. However, as Bitcoin's price has stabilized around $69K in recent hours, several meme coins have encountered significant resistance from sellers. Notably, SHIB price has failed to exhibit any substantial upward momentum during the recent surge in market demand, despite a massive increase in whale transactions.

SHIB Records 400% Jump in Whale Transactions

Shiba Inu (SHIB) is facing challenges in overcoming key resistance levels. As the deadline for the Ethereum spot ETF approval draws near, SHIB, an ERC-20 meme coin, could react significantly to the news. Analysts anticipate a potential breakout, providing investors with an opportunity to acquire SHIB before its price potentially rises.

Accumulation by Institutional Investors

Over the past few weeks, SHIB price has been consolidating within a range-bound zone. This consolidation has served as an accumulation phase, as evidenced by Santiment's Whale Transaction Count indicator.

A surge in this on-chain metric following a market crash or during consolidation typically indicates that institutional investors are accumulating assets. Conversely, if the index spikes after a market rally, it suggests that these investors may be preparing to sell.

From April 12 to May 21, the Whale Transaction Count consistently spiked during market dips, indicating ongoing accumulation by institutional investors. Data from IntoTheBlock reveals that the large transaction volume increased by approximately 417% in the past four days, rising from $28.2 million to $145 million.

Token Burn and Potential Price Impact

Shibburn has reported the removal of a significant number of SHIB tokens from circulation. Recent data indicates that 10,824,730 SHIB tokens were burned within the last 24 hours. Consequently, the burn rate—measuring the proportion of tokens sent to burn wallets—has increased by 59% as of this report.

The potential approval of a spot Ethereum ETF by the SEC could trigger a substantial increase in the prices of altcoins and memecoins.

SHIB Price Outlook

Shiba Inu has been oscillating within a symmetrical triangle pattern for several days, indicating an equilibrium between market demand and supply at current prices. Currently, buyers are attempting to push the price above the descending resistance line. At the time of writing, SHIB price stands at $0.0000255, representing a decline of over 1.1% in the past 24 hours.

Bullish traders are targeting a move above $0.000028. A successful breakout above this downtrend line could signal a weakening of bearish forces, potentially driving the price towards $0.000033, where significant bearish resistance is anticipated.

Alternatively, bears are poised to test the support level at $0.0000226 once again. If this level is breached, it may lead to increased selling pressure, driving the SHIB/USDT pair down towards the next major support at $0.0000185, negating the gains from the recent upward movement.