Shiba Inu (SHIB) Price Surges 10% Amid Strong Whale Purchase, What’s Next?

Shiba Inu (SHIB) has also joined other altcoins in the recent run-up within the broader cryptocurrency market. As a result, the SHIB price has surged by 10% in the last 24 hours, as an early Shiba Inu whale reawakens after nearly three years of inactivity, buying a massive 323 billion SHIB coins within hours.

Shiba Inu (SHIB) Whale Accumulation

Blockchain surveillance platform Spot on Chain highlighted the recent activities of a significant whale. This whale address originally received 167 billion SHIB in April 2021, eight months after Shiba Inu’s launch, from one of the earliest whales to interact with SHIB.

At the time of Spot on Chain’s report, the whale had acquired 149.3 billion SHIB using around 1,000 wrapped Ethereum (WETH) valued at $3.83 million. Following the report, the whale continued to purchase, acquiring an additional 173 billion SHIB.

An early buyer-linked whale just swapped 1K $WETH ($3.83M) for 149.3 $SHIB in the past hour!

The whale’s last $SHIB activity was selling 167B $SHIB ($6.13M) 3 years ago. These tokens were received from a super early buyer who bought 5.16T $SHIB with only 45 $ETH ($63.7K) on Mar… pic.twitter.com/ZrFkYZwtEB

— Spot On Chain (@spotonchain) June 5, 2024

By the end of these transactions, the whale had exchanged 2,188 WETH for 323 billion Shiba Inu tokens worth $8.29 million within three hours. As of the latest update, the whale has not sold or distributed any of these tokens, maintaining a balance of 323 billion SHIB.

SHIB Price Crosses Crucial Resistance

As of press time, the Shiba Inu (SHIB) price is trading 9.53% up at $0.00002616 with its market cap of over $15.4 billion. Also, the daily trading volumes have surged by 16% crossing past $763 million. Another major catalyst is the Shiba Inu (SHIB) burn rate surge which could boost the price further.

More importantly, the Shiba Inu (SHIB) price has crossed the 50-day EMA at $0.000025. However, this doesn’t guarantee the uptrend as of now. SHIB needs to convert the $0.00003 price level from resistance to support to maintain its uptrend. Failure to do so could result in a drop below the 50-day EMA.

However, reclaiming $0.00003 will be challenging. Data from IntoTheBlock shows a significant sell wall at this level, with 124,220 addresses holding 92.2 trillion SHIB tokens purchased between $0.000025 and $0.00003.

These holders tend to sell at breakeven when SHIB approaches this price, increasing selling pressure and hindering a breakout. For Shiba Inu to successfully breach $0.00003, a resurgence in accumulation is necessary to counteract this selling pressure.