Shiba Inu (SHIB) is again on top as crypto whales return to the meme coin’s ecosystem. On-chain data shows that these high-volume investors have been recently accumulating the meme coin, which could ultimately affect its price.
Shiba Inu Sees Spike In Whale Transactions
Data from the on-chain analytics platform IntoTheBlock shows that Shiba Inu saw a 2,300% increase in its daily large transaction volume, amounting to $223 million. This category of transactions exceeds $100,000 and is usually made by traders called “whales.” This development presents a bullish signal for the meme coin, as whales are known to significantly impact a coin’s price discovery.
Therefore, a surge in Shiba Inu’s price looks inevitable, as whale accumulation usually leads to an upward trend in the token’s price. Meanwhile, other metrics paint a bullish outlook for the meme coin. For instance, there has also been an increase in the daily active addresses and transactions, which suggests that crypto investors are actively trading the meme coin.
Shiba Inu’s burn rate is also up in the past seven days with over 143 million SHIB tokens burned during that period. Shiba Inu’s fundamentals are also strong. The meme coin recently secured a listing on the cryptocurrency payment platform CoinGate.
This listing is expected to expand Shiba Inu’s offerings. Users can use the meme coin to process some commercial transactions, including paying for Airbnb accommodations and purchasing from certain brands like Nike and Zalando.
However, despite such a bullish outlook, the layer-2 network Shibarium is still lagging, which will undoubtedly be a cause for concern for the ecosystem. Data from the Shibariumscan shows that the network has continued to record daily transactions under 10,000. This is a far cry from when Shibarium recorded millions in daily transactions.
SHIB’s Next Move On The Charts
Crypto analyst Ali Martinez recently provided insights into Shiba Inu’s future trajectory. In an X (formerly Twitter) post, he mentioned that the meme coin could witness a “20% upswing to $0.00002954” if it breaks the upper boundary of this descending parallel channel at $0.00002444.
Crypto analyst DamiDefi also revealed in an X post that Shiba Inu had formed a falling wedge on the daily time frame. He claimed that if the meme coin breaks out from its current price level, Shiba Inu could experience a price pump of over 50%.
Shiba Inu could, however, be held back by Bitcoin’s tepid price action as data from IntoTheBlock shows that the meme coin still has a strong price correlation with the flagship crypto. Shiba Inu recorded a significant rally on May 13 and looked to be experiencing a bullish reversal, but that wasn’t the case as it faced a sharp correction, declining alongside Bitcoin.
At the time of writing, Shiba Inu is trading at around $0.00002404, up in the last 24 hours according to data from CoinMarketCap.
Featured image from CoinMarketCap, chart from Tradingview.com
