Shiba Inu [SHIB] faced significant losses this week, positioning itself as one of the top losers in the crypto market’s top 20 assets. Despite this decline, the coin’s recent performance has sparked optimism among analysts, suggesting a promising bullish comeback might be on the horizon.
Over the past week, Shiba Inu experienced a notable decrease of over 12%. This downward trend ranked it as the second least performing cryptocurrency by market capitalization, according to data from Coinmarketcap.
These losses erased much of the gains SHIB had made earlier in the month, bringing its value down to within 5% of its opening price in October.
What’s particularly interesting about Shiba Inu’s recent performance is its trading pattern, which has been contained within a wedge shape and appeared to be nearing a breakout point. The latest drop nearly touched its upward support level, hinting at a potential bullish reversal.
As of the time of writing, SHIB had already rebounded by 6.15%, reaching a price of $0.000016. This bounce suggests a renewed interest from buyers, fueling speculation of a forthcoming bullish resurgence.
Prior to this recent dip, Shiba Inu had shown strength towards the end of September. However, its movements were limited due to the wedge pattern it had been following. With the possibility of a pattern breakout now looming, there is a chance for a more significant rally.
Analyzing Shiba Inu’s Accumulation Status
By observing the SHIB wedge pattern, one can expect increased activity that may indicate a potential recovery and breakout, or conversely, a different outcome.
Recent data on large holder transactions revealed that more significant amounts of SHIB were being removed from whale accounts rather than added. Large holder inflows totaled 747.75 billion SHIB on October 25, without much accumulation in preceding days. In contrast, outflows stood at 898.96 billion SHIB, with a notable increase in the past three days.
These large holder movements coincide with historical concentration data that shows a slight decrease in whale ownership from 60.03% at the beginning of the month to 59.74% by October 25. This indicates that whales have slightly reduced their holdings during this period.
While investor and retail trader balances saw minor upticks, rising from 13.24% to 13.31% and 26.73% to 26.75%, respectively, the overall demand remained subdued over the past three weeks.