SHIB Crashes 32% to 5-Month Low—But Are Whales Secretly Buying the Dip?
Shiba Inu has captured market attention after suffering a steep 32% drop over the weekend, reaching $0.000014—its lowest level in five months, dating back to September 2024. However, despite the downturn, blockchain data indicates a significant rise in whale activity, suggesting that large investors are taking advantage of the dip.
The sell-off was largely fueled by broader market instability, with new tariff policies targeting China, Mexico, and Canada prompting investors to offload riskier assets. Yet, according to IntoTheBlock, large SHIB transactions skyrocketed from 1.5 trillion on January 31 to 4.3 trillion SHIB by February 2. These transactions, representing wallets holding at least 0.1% of SHIB’s supply, signal that major investors see current price levels as an attractive buying opportunity.
Unlike other major altcoins such as Solana ($SOL ), Chainlink ($LINK ), and Avalanche ($AVAX ), which saw losses below 20%, SHIB’s steeper decline suggests additional factors may be at play. Technical analysis points to a possible corrective ABC pattern, with the recent drop marking the end of Wave C—often a precursor to a rebound, especially when backed by whale accumulation.
Key support levels at $0.000014 and $0.000013 remain critical, as a break below could open the door to further losses, potentially testing $0.000010. However, early signs from the MACD indicator suggest weakening selling pressure, hinting at a possible shift in momentum if SHIB holds above key moving averages.
With trading volumes surging and whale transactions remaining elevated, market participants are closely watching whether SHIB can reclaim $0.000015, which could pave the way for a push toward $0.000018. That said, broader economic risks, including escalating U.S. trade tensions, remain a wildcard that could influence SHIB’s near-term trajectory.