Can the price of Shiba Inu really explode to 40% in June?
NOIDA (CoinChapter.com) - Shiba Inu (SHIB)’s recent price action has gone against the overall crypto market trend, with the meme coin’s price rising by nearly 17% to reach a daily high of $0.0000288 on May 30. Moreover, according to the coin’s technical indicators, the coin could have more gains to come.
SHIB price trend over the past 7 days. Source: Coinstats
Shiba Inu price has been on the rise recently, with the token gaining 23% from its daily low of 0.0000236 on May 24. The Shiba Inu token price corrected after reaching its highest level since April 9 but remains profitable over the past seven days.
Whale is optimistic about the price prospects of Shiba Inu
The Shiba Inu Whale Distribution Chart tracks the percentage of SHIB tokens held by various wallets over the past few months, highlighting significant changes in ownership that could be crucial to the token’s future price action.
The data shows that the largest wallet holding more than 100 million SHIB tokens continues to increase. This group of Shiba Inu whales, represented by the red line, continues to increase their share of SHIB, indicating that a strong accumulation phase is underway.
This behavior highlights confidence in the asset’s long-term potential, suggesting that major holders or institutions are betting big on Shiba Inu’s future.
In contrast, smaller to medium-sized wallets, especially those holding between 1 million and 10 million tokens (represented by the brown line), have seen a significant drop in their holdings. This redistribution suggests that smaller investors are transferring wealth to larger, more strategic players.
A significant decrease in this portion could mean that smaller holders are either consolidating their positions or cashing out, leaving more SHIB in the hands of those with greater market influence.
Additionally, the stability shown by wallets holding between 10 million and 100 million tokens (black line) suggests that medium to large holders are maintaining their positions, adding to the overall bullish sentiment.
These investors may be waiting for the right market conditions to either add to their holdings or take advantage of an anticipated price increase.
The behavior of these large whale investors provides a bullish case for Shiba Inu. Large-scale accumulation by prominent holders is often a precursor to major price moves. As these investors buy and hold more SHIB, the reduction in supply to retail investors could push prices higher due to increased scarcity.
Meanwhile, SHIB prices are currently breaking out of a technical formation known as a “descending triangle.”
Market analysts generally consider the descending triangle to be a bearish continuation signal.
The configuration features a rising upper trendline that gradually makes lower highs for price action, and a flat lower trendline that acts as a consistent support level that price has difficulty breaking.
A bullish pattern can turn bullish in certain situations. For example, if the pattern forms during an uptrend and the price breaks above the upper trendline, then it indicates a continuation of the bullish trend.
This is exactly what happened to SHIB price after its relatively weak breakout. Shiba Inu price drew a tentative breakout of the pattern on May 20 and subsequently retested the upper trendline as support.
However, the Shiba Inu price rebounded again, indicating that traders’ confidence in the bullish trend is strong.
In this pattern, potential price targets are often measured by the maximum height of the triangle at its widest point. Therefore, confirmation of this bearish pattern could cause Shiba Inu Token to drop beyond 43% to reach its expected price target of $0.0000398.