Shiba Inu (SHIB) Price Prediction: Whale Activity Shows Cautious Signs, Technical Indicators May Turn Bullish

Gate news, Shiba Inu (SHIB) is currently at a critical moment, with its price movement showing potential reversal signs. After several months of weakness, SHIB has completed a technical pattern that may indicate the arrival of a bullish trend. As the price consolidates, some experts point out that the likelihood of a breakout is very high, and SHIB is expected to reach a new high of $0.00002500. However, whale activity in the market shows cautious signs, adding some uncertainty to SHIB's future trend.

1. Formation of the Descending Wedge Pattern and Potential Breakout

In the past few months, the SHIB price has been fluctuating within a descending wedge. This trend often indicates that the price may soon break through the downward trend. A descending wedge forms when the price consistently makes lower lows and higher highs, and the range between the highs and lows narrows over time. Analysts say this pattern could be a precursor to a bullish breakout, especially when trading volume increases.

From the current setup, SHIB is likely clearly in the exit consolidation phase. A breakout above the wedge's upward trendline could lead to SHIB's price rising to the range of $0.00002500 to $0.00003000. However, this depends on market conditions and trading volume.

Currently, the meme coin is still trying to test the support level around 0.0000115 USD, and the possibility of a reversal is becoming increasingly apparent. If the SHIB price can maintain above this important level, it may trigger a new round of bullish price movement. However, if it fails to hold this support area, it may face further selling pressure.

2. The Surge in Burn Rate and Its Impact on SHIB Price

In addition to technical configurations, the Shiba Inu community is actively working to reduce the circulating supply of SHIB through a token burn mechanism. With millions of SHIB tokens transferred to inactive wallets, the recent burn rate has increased by over 12,000%. Data from Shibburn shows that 13,090,171 SHIB have been burned in the last 24 hours, thereby reducing the token supply.

Although it is unlikely to immediately affect the price in the short term, ongoing token burns may support long-term growth momentum. A decrease in supply could lead to scarcity, which, if demand remains constant or increases, will help trigger a bullish trend. This mechanism is designed to enhance the scarcity of SHIB in the long run, thereby having a positive impact on its value.

3. Whale activity shows cautious signs

As the burn rate soars, the activities of large Shiba Inu holders (i.e., whales) have significantly decreased. On-chain data from IntoTheBlock shows that the inflow of SHIB from large holders has dropped by 97% in the past few days. This suggests that whales may be adopting a wait-and-see strategy. They might be waiting for more favorable market conditions before taking significant action.

The cash flow of major shareholders is often a key indicator reflecting market sentiment, and a decline in this value may indicate that whales are taking a cautious stance towards overall volatility. A reduction in major shareholder activities may suggest that investors are waiting for further clarification regarding the future of SHIB. Additionally, recent macroeconomic developments reflect the same situation, impacting market sentiment.

Nevertheless, some analysts believe that if the overall market conditions improve and SHIB is able to break through the current pattern, then Shiba Inu could still benefit from a bullish reversal.

4. Technical indicators suggest a possible reversal

(Source: Trading View)

In addition to the descending wedge pattern, other technical indicators are providing a more positive outlook for Shiba Inu prices. The Relative Strength Index (RSI) is currently at 41.09, indicating that SHIB has not yet entered the oversold territory. An RSI rising above 50 may signal a shift in bullish momentum.

Additionally, the MACD line is forming a bullish divergence, indicating that the trend may be shifting in favor of buyers. Unless these signs weaken, SHIB may exhibit an upward trend, approaching its target resistance level.

Conclusion:

Shiba Inu is at a critical turning point, with technical patterns suggesting a potential bullish breakout, and the token burn mechanism providing support for long-term growth. However, the cautious attitude of whales and macroeconomic uncertainty add variables to its short-term price movement. Investors should closely monitor whether SHIB can successfully break through the descending wedge and observe changes in whale activity to determine if it can initiate a new round of upward trend.