Following a broader market downturn, large investors appear to be stepping in to provide support, with memecoins like Shiba Inu (SHIB) catching their attention. A notable whale has recently accumulated an astonishing 257.5 billion SHIB, signaling renewed interest in the asset.
On-chain data shows that the top ten exchange addresses now control 130.47 trillion SHIB, with an additional 3 trillion tokens acquired this month alone. However, despite this aggressive accumulation, SHIB has struggled to gain momentum, currently trading 13% below its yearly opening price and hovering near a crucial $0.00001500 support level. Since the launch of TRUMP, Shiba Inu has faced persistent selling pressure, recording daily lows and staying well below the overbought threshold on the Relative Strength Index (RSI). Meanwhile, the Chaikin Money Flow (CMF) continues flashing bearish signals, suggesting that liquidity inflows remain weak.
Whale Behavior: A Strategic Accumulation or Market Play?
Adding to the intrigue, the top ten addresses have offloaded 30 trillion SHIB in the last ten days, introducing a significant imbalance in supply and demand. This shift has resulted in a decline of $1.31 million in market capitalization throughout January, amplifying concerns about SHIB’s near-term trajectory.
Yet, a potential reversal might be unfolding. Over the past 24 hours, SHIB has climbed 6%, reaching price levels reminiscent of its last election-fueled rally, which saw a 58% surge within a week. Despite this upward move, buying volume remains relatively muted at $600 million, a stark contrast to the $7.6 billion trading volume observed in December. With retail participation still subdued, this latest price movement appears to be largely whale-driven.
Will SHIB Rally or Is This a Trap?
So far in January, whale wallets have accumulated an astonishing 40 trillion SHIB, raising speculation that this could be the start of another accumulation phase. If buying continues into the new month, the 256 trillion SHIB currently held could be just the foundation for an even larger positioning strategy.
However, caution is warranted. With trading volume still significantly lower than previous surges and market volatility increasing ahead of the FOMC meeting, the recent 6% uptick could be a temporary move rather than a sustained breakout. While a market-wide bullish shift could fuel a potential 58% rally, investors should remain vigilant, as whale-driven activity doesn’t always translate into long-term price stability.
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