Shiba Inu price drops 1.79% to $0.000012, but bullish technical patterns indicate a potential rebound toward $0.0000239.
Whale accumulation surges as 400 billion SHIB are purchased in one day, boosting market sentiment amid the price decline.
Weekly SHIB burn exceeds 629 billion tokens, reducing supply and supporting the possibility of a sustained upward price move.
Shiba Inu fell 1.79% on August 2, trading at $0.000012, as the broader market struggled. Despite the dip, technical indicators and whale activity have given some traders confidence in a possible rebound.
Market analyst Joe Swanson has highlighted two bullish setups on the SHIB chart. The first is a cup and handle formation, developing from May’s highs through June’s lows to July’s peak. Swanson noted the price pullback from $0.00001597 as the handle, suggesting the pattern remains intact.
The formation signals a potential move toward resistance at $0.00001710. Swanson projects a further 36% rally from that level, targeting $0.0000239 if momentum continues.
Double Bottom Pattern Adds Support
Alongside the cup and handle, Swanson identified a double bottom pattern with key support at $0.0000103. Reaching $0.000017 would confirm the structure and reinforce bullish sentiment. Maintaining this support level is seen as critical for the forecast to hold.
Source: TradingView
Large investors have been increasing exposure to SHIB during the downturn. Netflows of major holders jumped from 26 billion to 422 billion tokens in just 24 hours. This data indicates whales acquired nearly 400 billion SHIB while prices were under pressure.
SHIB Burn Rate Surges
The token’s burn rate has accelerated sharply, coinciding with Shiba Inu’s fifth anniversary. Over 629 billion SHIB have been removed from circulation in a week, representing a burn rate increase of more than 1,700 percent. Combined with whale accumulation, this has reduced the available supply by over one trillion tokens in recent days.
The combination of reduced supply through burns and aggressive whale buying supports the possibility of a price rebound. Both factors can limit selling pressure and reinforce upward momentum if market conditions stabilize.
The convergence of bullish chart patterns, heightened whale interest, and significant token burns is drawing attention from traders. While the price remains under short-term pressure, these developments suggest the groundwork for a recovery is in place.
