According to a recent report from the Santiment analytics platform, Shiba Inu (SHIB) may be starting a new price increase cycle, thanks to the surge in large whale transactions. These transactions often occur before significant market movements, which has drawn particular investor attention to SHIB recently.
The correlation between whale trading and market volatility
Santiment has pointed out that transactions exceeding $100,000, often referred to as “whale transactions,” are closely linked to significant turning points in the cryptocurrency market. In the past, spikes in whale trading have frequently signaled major changes in the value of cryptocurrencies. A notable example is in December 2017, when whale Bitcoin transactions reached a record 62,317 transactions in just one day, right before the price of Bitcoin peaked near $20,000.
Although these spikes are often accompanied by individual investors taking profits, Santiment also emphasizes that the increase in whale activity may indicate accumulation during a price decline. One example is in May 2021, when the price of Bitcoin dropped by up to 45% and many retail investors panicked and sold off. However, during that time, whale buying activity surged significantly, marking the beginning of a strong recovery phase for the market.
Signs of recovery
Shiba Inu appears to be following a pattern similar to previous occasions. On June 5, 2025, SHIB recorded 527 whale transactions – the highest in the past 5 months. Since then, the market value of this meme coin has increased by 10%, a positive sign for investors monitoring SHIB.
Santiment notes that this increase may signal the beginning of a sustainable price increase. Although SHIB may no longer hold the prominence of Dogecoin and other speculative coins, the renewed attention from whales and major investors could bring new momentum to this coin.
Although data from Santiment shows that increased whale activity may lead to a price increase, investors should also exercise caution and note that whale transactions do not always accompany a clear price trend. Whale transactions may not entirely predict future price direction, but they remain an important and noteworthy indicator.
Santiment's report concludes:
“With the surge in SHIB whale activity and prices starting to rise, this upward trend may continue.”
While past patterns help investors gain an overview, caution remains a crucial factor in making investment decisions, especially in the volatile cryptocurrency market.
With the surge in whale trading and signs of a recovering market, Shiba Inu may be entering a new price increase cycle. However, investors need to closely monitor market factors and note that whale trading is just one of the signals that need to be carefully evaluated.