Shiba Inu [SHIB] has kicked off the year 2025 on a positive note. Starting from New Year’s Eve, this memecoin has surged from $0.000020 to a peak of $0.000022, showcasing a 10% increase within the last three days.
This upward trend is consistent on the daily charts, with Shiba Inu currently trading at $0.00002208, reflecting a 4.47% rise in the span of 24 hours.
Prior to this recent surge, SHIB had been on a downward trajectory, experiencing a 25.50% decline on a monthly basis.
The newfound momentum has sparked discussions regarding the underlying factors behind it. Analysts attribute increased whale accumulation as a key driver of this surge.
Accumulation of 220 Billion Tokens by Shiba Inu Whale
According to Lookonchain data, Shiba Inu whales have been actively amassing this memecoin. Recently, one whale withdrew 220 billion SHIB tokens, valued at $4.63 million at the current moment.
This particular whale had remained inactive for the past five months.
This accumulation by whales aligns with a broader trend where whales have been increasing their SHIB holdings over the past week.
During this period, whales have augmented their holdings by 2.32 trillion tokens, as reported by Santiment.
This accumulation is exemplified by the decrease in transfers to exchanges, with a notable spike in SHIB’s exchange outflow. The exchange balance has shifted to negative during this period.
Significantly, when whales engage in accumulation, it displays their confidence in the market, signaling an anticipation of further gains after viewing the recent dip as a buying opportunity.
Impending Price Recovery for SHIB?
The uptick in whale activity has had a positive impact on SHIB’s performance. Currently, the second-largest memecoin is witnessing robust buying pressure and an upward momentum.
This buying pressure and upward trend are evident through bullish signals on RSI and Stoch indicators, confirming solid buying activity and hinting at a building upward momentum.
Additionally, Shiba Inu’s supply has diminished as tokens are being moved into private wallets. Consequently, SHIB tokens have transitioned from oversupply to scarcity, evident in an escalating stock-to-flow ratio.
The memecoin’s stock-to-flow ratio has surged from zero to 4.87 million tokens. When scarcity rises and demand remains unchanged or increases, prices typically see an upward movement.
In essence, Shiba Inu is presently immersed in a positive bullish sentiment and upward momentum as investors leverage the recent dip for accumulation.
With favorable conditions prevailing, SHIB might observe further gains. If this sentiment persists, SHIB could potentially reclaim $0.000023.
A breakout from this point would bolster the memecoin’s position to reach $0.000026. Conversely, if the recent bullish move falters, SHIB might retreat to $0.000020.