Is a 40% Surge in Shiba Inu Price Possible in June?
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NOIDA (CoinChapter.com)— Shiba Inu (SHIB) has been defying the broader crypto market trend, experiencing a 17% increase in value since the beginning of the week, reaching a daily high of $0.0000288 on May 30. Furthermore, the token’s technical analysis suggests that it may continue to see gains.
SHIB price movement over the past 7 days. Source:
Coinstats
SHIB’s price has been on the rise lately, with the token surging 23% from its low of $0.0000236 on May 24. Although the price corrected after reaching its highest point since April 9, it has remained profitable over the past week.
Whales Show Optimism for Shiba Inu Price
The whale distribution chart for Shiba Inu tracks the percentage of SHIB coins held by different wallet sizes, revealing significant changes in ownership that could impact the coin’s future price movements.
The data indicates a consistent increase in holdings by the largest wallets, which hold over 100,000,000 SHIB tokens. This group of Shiba Inu whales, represented by the red line, has been steadily increasing their share of SHIB, indicating a strong accumulation phase.
This behavior demonstrates confidence in the long-term potential of the asset, suggesting that major holders or institutions are placing significant bets on Shiba Inu’s future.
Shiba Inu whales continue to accumulate the token.
On the other hand, smaller to medium-sized wallets, particularly those holding between 1,000,000 and 10,000,000 coins (represented by the brown line), have seen a notable decrease in their holdings. This redistribution suggests a transfer of wealth from smaller investors to larger, more strategic players.
The significant decrease in this segment could mean that smaller holders are either consolidating their positions or cashing out, ultimately leaving more SHIB in the hands of those with greater market influence.
Additionally, the stability observed in wallets holding between 10,000,000 and 100,000,000 coins (black line) indicates that medium to large holders are holding their positions, contributing to the overall bullish sentiment.
These investors are likely waiting for favorable market conditions to either increase their holdings or take advantage of anticipated price surges.
The behavior of these whale investors presents a bullish case for Shiba Inu. Large-scale accumulations by prominent holders often precede significant price movements. As these investors continue to buy and hold more SHIB, the reduced supply available to retail investors could drive up the price due to increased scarcity.
SHIB Price Breakout Reflects Trader Confidence
Meanwhile, SHIB’s price is currently breaking out of a technical pattern known as the ‘descending triangle.’
Market analysts typically view the descending triangle as a bearish continuation signal.
The pattern features a downward-sloping upper trendline, which gradually lowers the price’s highs, and a flat lower trendline that serves as a consistent support level that the price struggles to break.
A bullish pattern predicts a 43% increase in the price of Shiba Inu token. Source:
Tradingview.com
However, there are instances where the pattern becomes bullish. For example, if the pattern forms during an uptrend and the price breaks out above the upper trendline, it indicates a continuation of the bullish trend.
This is exactly what is happening with SHIB’s price after its breakout above the pattern. The Shiba Inu price initially broke out of the pattern on May 20, followed by a retest of the upper trendline as support.
Furthermore, the Shiba Inu price has once again rebounded, indicating strong trader confidence in the bullish continuation setup.
In this setup, the potential price target is typically determined by measuring the maximum height of the triangle at its widest point. Therefore, confirming the bearish pattern could result in a 43% drop in the price of the Shiba Inu token, reaching the projected price target of around $0.0000398.
