Shiba Inu [SHIB] has kicked off the year 2025 with a strong performance. From New Year’s Eve, the meme-inspired cryptocurrency has surged from $0.000020 to a peak of $0.000022, showcasing a remarkable 10% increase over just three days.
This positive trend has been consistently reflected on daily price charts. Currently, Shiba Inu is trading at $0.00002208, reflecting a notable 4.47% surge in a 24-hour period.
Prior to this recent upward movement, SHIB had been experiencing a downward trend, resulting in a 25.50% decline on a monthly basis.
The sudden surge has sparked discussions around various factors contributing to this upward momentum. Analysts point towards increased accumulation by large holders, or whales, as a significant factor behind this resurgence.
Accumulation of 220 Billion SHIB Tokens by Shiba Inu Whale
Recent data from Lookonchain indicates that Shiba Inu whales have been actively accumulating the cryptocurrency. A notable instance within the last day involved a large holder withdrawing 220 billion SHIB tokens, valued at $4.63 million at the current market value.
This particular whale had remained inactive for the past five months.
This accumulation activity is part of a broader trend, as multiple large holders have been increasing their SHIB holdings over the past week.
According to Santiment, these whales collectively augmented their holdings by 2.32 trillion tokens during this period.
An important observation supporting this accumulation trend is the decrease in token transfers to exchanges. Over the previous week, there has been a significant increase in SHIB’s outflow from exchanges, resulting in a negative exchange balance.
Significantly, when whales shift towards accumulation, it reflects their confidence in the market’s potential for future gains, particularly after viewing the recent dip as an opportunity to buy.
Prospects for SHIB’s Price Recovery
Unsurprisingly, the heightened whale activity has positively impacted SHIB’s performance. Currently, the second-largest meme-based cryptocurrency is witnessing substantial buying pressure and an upward trend.
This buying pressure and positive trend are supported by bullish indicators on RSI and Stoch, signaling robust buying interest and hinting at a growing upward momentum.
Additionally, there has been a reduction in Shiba Inu’s circulating supply as more tokens are being transferred to private wallets. This shift from oversupply to increased scarcity is evident through a rising stock-to-flow ratio for SHIB.
The stock-to-flow ratio for the cryptocurrency has surged to 4.87 million tokens, reflecting growing scarcity. Typically, when scarcity increases and demand remains stable or rises, prices tend to follow suit.
In summary, Shiba Inu is currently experiencing strong positive sentiment and upward momentum, as investors capitalized on the recent price dip to accumulate more tokens.
With favorable conditions in place, SHIB stands a chance to achieve further gains. If the prevailing market sentiments persist, SHIB could potentially reclaim the $0.000023 mark.
A breakthrough from this level would bolster the cryptocurrency, potentially driving it towards $0.000026. Conversely, if the recent bullish movement loses steam, SHIB could retrace to $0.000020.