Shiba Inu Could Potentially See a 99% Increase Following Repetitive Pattern in 2024
After experiencing notable drops of 12.31% and 26.72% in recent weeks, Shiba Inu [SHIB] is displaying early signs of a recovery. The meme-based cryptocurrency witnessed a modest 0.41% increase in daily gains, hinting at a potential shift in market sentiment.
Large holders, who previously contributed to downward pressure, seem to be scaling back on their selling activities. This presents an opportunity for individual and speculative traders to push the price higher in the upcoming days.
Decline in Selling Activity by Whales
Recent data from IntoTheBlock indicates a significant decrease in whale activity within the last 24 hours. Both the number of transactions and transaction volumes involving large holders have dropped noticeably.
Whales refer to addresses holding up to 1% of a cryptocurrency’s total supply. They play a crucial role in influencing price movements. Presently, SHIB’s whale transactions have nearly halved, declining from 130 to just 70.
This decline has brought the total trading volume down to about 920.76 billion SHIB, equating to $19.87 million in value.
The gradual price uptick accompanied by this reduction in whale activity suggests that these significant holders are transitioning from aggressive selling to a more neutral stance in the market.
This transition is reinforced by the average transaction size in the last 24 hours, which has decreased to $5,960—significantly lower than the seven-day average of $22,640.
When whale involvement diminishes, other market participants often step in, potentially influencing price trajectories. Typically, high whale activity maintains elevated average transaction sizes. A decrease like this signifies a reduced impact from large holders.
Anticipating a 99% Increase as Trader Engagement Grows
SHIB appears to be on track for a potential upward movement, as it follows a pattern akin to one observed in 2024. The cryptocurrency is currently trading along a descending resistance line and a support level. In 2024, breaking out of this pattern resulted in an impressive 156.56% price surge.
If history repeats itself and the current support level of $0.00002055 holds, breaching the descending resistance line could propel SHIB to a 99.15% increase, reaching $0.00004095.
This expected surge is projected to be initiated by individual traders, as bullish sentiment within this segment continues to strengthen. Data from Coinglass’s Open Interest and Exchange Netflow demonstrates heightened activity from both derivative and spot traders.
Over the last 24 hours, Open Interest surged by 28.97%, hitting $226.89 million. This surge reflects the number of outstanding derivative contracts.
The uptick, alongside a funding rate of 0.0110%, indicates a rise in bullish contracts, heightening the likelihood of SHIB’s price moving upwards in the near future.
Furthermore, spot traders are shifting assets from exchanges into private wallets, a strategy often adopted when market participants anticipate long-term price appreciation.
Approximately $567,000 worth of SHIB was moved off exchanges in the past day, signaling growing confidence and diminished selling pressure.
With increasing bullish momentum among individual and speculative traders, SHIB appears to be gearing up for a substantial price breakout.