Shiba Inu [SHIB] wrapped up the week as one of the major underperformers within the top 20 cryptocurrencies. Nonetheless, its recent performance reveals some intriguing insights that could set the stage for a robust bullish resurgence.
Over the past seven days, Shiba Inu experienced a decrease of over 12%. This decline positioned it as the second most pessimistic coin among the leading cryptocurrencies in terms of market capitalization, as per Coinmarkecap data.
This downward trend effectively erased most of its earlier gains this month, pushing it closer to its October starting value by almost 5%.
What stood out about Shiba Inu’s performance was its trading pattern within a wedge formation that had narrowed into a compression zone. The recent dip nearly touched its rising support level, hinting at the potential for a renewed bullish rally.
At the time of writing, SHIB had already rebounded by 6.15%, reaching a price of $0.000016. This rebound indicates a noticeable resurgence in demand over the past day, hinting at a possible bullish revival ahead.
In late September, Shiba Inu displayed a strong upward momentum. However, its movements were confined by the wedge pattern constraints, preventing sustained rally attempts. Now, with a pattern break appearing increasingly likely, the situation might shift.
Assessing the Status of Shiba Inu Accumulation
The SHIB wedge formation should theoretically trigger some actions that could suggest either a recovery and breakout or an alternative scenario.
Recent data on the movement of large holders indicated that more whales were transferring Shiba Inu out of their accounts rather than adding to their holdings.
On October 25, the large holder inflows totaled 747.75 billion SHIB, showing minimal build-up in the preceding days of the week. Conversely, outflows from large holders amounted to 898.96 billion SHIB, with a significant increase in outflows over the past 3 days.
These movements by large holders coincided with historical concentration statistics. Whale holdings decreased from 60.03% at the beginning of the month to 59.74% by October 25, directly indicating a slight reduction in their holdings so far this month.
While investor balances saw a rise from 13.24% to 13.31% and retail trader balances increased from 26.73% to 26.75%, the growth in both categories was marginal. This suggests a period of low demand witnessed over the last three weeks.