Shiba Inu Price Eyes 25% Rally as Outflows Jump and Whales Buy 62B Coins

The Shiba Inu price has crashed this week, coinciding with the broader weakness in the crypto market. The ongoing whale and smart money accumulation hints that the crash could be a shakeout that could lead to a strong bullish breakout in the near term. 

Shiba Inu Price Technical Analysis Points to a Rebound

The daily timeframe chart reveals that the Shiba Inu price has plunged to an important support level. It dropped to a low of $0.00001178, a level it has failed to move below a few times since August this year. 

On the positive side, this price action means that the coin has formed a triple-bottom pattern, whose neckline is at $0.00001481. This neckline coincides with the ultimate resistance level of the Murrey Math Lines. 

Therefore, the Shiba Inu Coin price will likely have a 25% bullish breakout to the neckline at $0.00001480.

However, the SHIB price forecast 2025 will become invalidated if it crashes below the triple-bottom at $0.00001178. Such a move will confirm that the coin has formed a descending triangle pattern, which often leads to more downside. 

SHIB Whale Accumulation and Falling Exchange Balances

The bullish outlook is supported by the fact that whales are actively accumulating the coin during the ongoing crash. Nansen data shows that whales hold over 100.52 billion tokens, up from last month’s low of 38.52 billion. This means that they have accumulated over 62 billion tokens worth over $745,000 in the past few days.

The same trajectory has happened among the so-called smart money investors who have boosted their SHIB holdings by 98% in the last 30 days to over 12.46 billion.

In most cases, whales and smart money investors accumulate a token as they expect the price will rebound.

The bullish case is also made clear by the fact that exchange outflows have jumped in past few months, a sign that investors are not selling their Shiba Inu coins and are moving them to self-custody. There are now 282.23 trillion SHIB tokens in exchanges, down from 290 trillion on the same date in August.

A potential bullish case for the SHIB price is that more coins are being burned this week. The burn rate rose by 112% on Tuesday, a move that eliminated millions of tokens from circulation.

There is also a rising possibility that at least one company will file for a spot SHIB ETF, a move that will lead to more demand this year. Besides, based on the recent guidelines of crypto listings by the SEC, Shiba Inu meets the criteria for approval as it has a regulated Coinbase futures product.