Shiba Inu’s (SHIB) price has been on a downtrend despite rising whale activities in transactions and token burns .
Intotheblock data shows that large transactions have reached over $982 million from major holders.
This has led to discussions regarding possible changes in market move based on higher incidence of whales, even though there is a dip in price.
Whale Transactions Surge Amid Shiba Inu Price Decline
Shiba Inu has shown timely growth in the large transaction size with over $982.45 million in the week.
Such large trades above $100,000 suggest that whales and investors are becoming more active in their trades.
According to on-chain data, 73% of SHIB’s total supply is held by large investors, underlining their influence over the market.
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Despite this, Shiba Inu’s price has dropped 2.13% in the last 24 hours, currently trading at 0.000025748 USDT.
The discrepancy between whale activity and price movement suggests uncertainty, as investors await clearer signals regarding SHIB’s next major move.
However, market analysts believe that traders are buying and holding Shiba now as the price is down. They wait to sell when the price goes up.
On the negative view if the transactions indicate selling pressure then it will be possible for the prices to drop even more.
Technical Analysis: Key Support and Resistance Levels
From the Daily Chart, we see a slowdown in the Shiba Inu price momentum and crucial areas being tested.
Price has fallen from its last high of 0.000030000 USDT and is closer to the support of 0.000025497 USDT which coincides with the 49-day M A.
If this support continues to hold, SHIB could recover towards resistance at 0.000027668 USDT.
The Golden Cross, a bullish signal, was formed way back in October when the 13-day Moving Average moved above the 49-day Moving Average.
However, the short-term 13-day MA now offers immediate resistance to the bulls and restricts upward potential for SHIB.
A breakout above 0.000027668 USDT will enable another run at 0.000030000 USDT mark a sign of bullish continuation.
The Relative Strength Index (RSI) is currently at 44.86 which is highly suggestive of a neutral to bearish territory.
The recent break below the 50 level points to reduced buying pressure and further pullbacks can bring the 30 RSI level into oversold territory.
However, if buyers re-enter at these levels SHIB might find its way up to a price recovery.
Shiba Inu Burn Rate Soars 319,571%
In addition to the surge in whale activity, the Shiba Inu burn rate has skyrocketed, fueling optimism among holders.
According to Shibburn on the 16th of December, the SHIB burn rate rose by 319, 571% and 35,713,674 SHIB tokens were burned.
Shibburn data recorded a Burn rate of 6,190,829 $SHIB in the last 24 hours marking a 70.46% increase.
Burning tokens lowers the supply while the demand stays constant, which may help in raising the prices.
However, despite all these developments, the price of SHIB has continued to be suppressed in the short term.
Experts believe that an additional burn rate alongside the consistent buying from whales may help spike up Shiba Inu price.
Outlook for Shiba Inu Amid Rising Whale Activity
The burn rate and increased volume of large transactions on SHIB point to strong community and investor engagement, despite near-term price headwinds.
However, with increased whale transactions indicate that the major holders are more active now, and could be preparing for the next big market swing.
