The Shiba Inu price has crashed to a crucial support level, as on-chain metrics indicate ongoing accumulation by whales and so-called smart money investors.
Summary
- Shiba Inu price has bottomed at a crucial support level this week.
- On-chain data show that whales are slowly accumulating the coin.
- Exchange balances have been in a strong downward trajectory.
Whales are buying SHIB; exchange outflows jump
Shiba Inu (SHIB), the biggest meme coin on Ethereum (ETH), could be about to rebound after plummeting by 633% from the highest point in November last year.
A key catalyst for the coin is that whales are accumulating it aggressively. Nansen data shows that whales have increased their holdings by 85% over the last 30 days, reaching over 100.5 billion coins.
These investors have bought over 62 billion SHIB coins since September 13. This is notable since the accumulation started after the recent Shibarium hack.
Similarly, insiders have been on a buying spree this month. They have boosted their holdings to 12.4 billion coins, up from a low of 10 billion coins in August this year.
Increased whale and smart money buying is a sign that these investors expect the coin to rise. In most cases, these market participants buy before a rebound.
Another bullish case for the SHIB price is that exchange outflows have accelerated this month. There are now 283 trillion tokens on exchanges, down from 297 trillion three months ago.
A potential catalyst for the Shiba Inu price is the rising hope among the community that at least one fund manager will apply for a spot SHIB ETF, which the U.S. Securities and Exchange Commission (SEC) may approve.
Additionally, based on the SEC standards released last week, an SHIB ETF would likely receive expedited approval, given that its Coinbase futures already exist.
Shiba Inu price technical analysis
Technical analysis suggests that the SHIB price could rebound soon, as it has crashed to a critical support level. This support is part of the lower side of the symmetrical triangle pattern, whose two lines are nearing their confluence level.
Additionally, the current price is aligned with the major support/resistance level of the Murrey Math Lines tool. In most cases, an asset tends to rebound after hitting this support level.
Therefore, a rebound could see the Shiba Inu price soar to the ultimate resistance at $0.00001490, up by about 25% above the current level. A drop below the major S/R will invalidate the bullish forecast.
