Shiba Inu Price: Will 500% Surge in Whale Activity Lead to an Imminent SHIB Rally?

Shiba Inu (SHIB) has been bullish over the previous 24 hours, despite starting the day with negative momentum. However, bullish momentum faded after failing to break through the intra-day high of $0.00000892, causing a fall to $0.000008842 by press time, a 0.19% drop from the day’s high.

SHIB/USD 24-hour price chart (source: CoinStats)

Shiba Inu’s Whale Activity and Burn Rate

Concurrently, Shiba Inu has had an uptick in whale activity and burn rates, signalling a vibrant period of transactions and potentially setting the stage for a rally.

According to IntoTheBlock’s data, transactions exceeding $100,000 increased, escalating from 544 billion SHIB tokens to 2.82 trillion within 24 hours.

This leap represents a more than 500% increase in transaction volume, moving from a valuation of $4.88 million to $25 million. The remarkable aspect of this growth is that it materialized over just 33 transactions, indicating that larger volumes of SHIB are being moved per transaction by these whale accounts.

In the past 24 hours, there have been a total of 6,643,089 $SHIB tokens burned and 7 transactions. Visit https://t.co/t0eRMnyZel to view the overall total of #SHIB tokens burned, circulating supply, and more. pic.twitter.com/2ZfruZazNO

— Shibburn (@shibburn) February 6, 2024

Alongside the spike in whale transactions, the SHIB ecosystem observed a significant rise in token burn rates. Shibburn’s reporting shows a 282% increase in the daily burn rate, which, while monetarily less impactful compared to whale transactions, plays a crucial role in reducing the overall token supply, potentially influencing the coin’s value positively.

Over 24 hours, approximately 6.64 million SHIB tokens were eliminated from circulation, underscoring the community’s efforts to enhance the coin’s scarcity and value.

SHIB/USD Technical Analysis

The Chaikin Money Flow (CMF) rating of 0.04 on the SHIBUSD price chart indicates that the market for SHIB/USD is under minor purchasing pressure. This pattern shows that investors are interested in buying SHIB/USD, which may increase its value.

If the CMF rating continues to grow, it may suggest more purchasing pressure and further drive the value of SHIB/USD. Furthermore, the diminishing token supply due to the community’s efforts to remove tokens from circulation may add to the coin’s scarcity and boost its value in the long term.

SHIB/USD 24-hour price chart(source: TradingView)

The Know Sure Thing indicator (KST) rating of -77.0731 and rising movement implies that the momentum for SHIB/USD may be shifting. While the KST rating remains low, the upward increase suggests a turnaround in the trend. If this rising trend continues, it may attract additional investors, raising the value of SHIB/USD.

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