Shiba Inu ($SHIB ), the popular meme coin, has been on a steady upward trajectory over the past week. Its price growth has been fueled by a combination of whale accumulation and reduced selling pressure from retail investors. With the coin now eyeing a monthly high, all eyes are on SHIB’s next move as the market shows signs of confidence in its future value.

Whale Accumulation: A Key Driver of SHIB’s Rally

Recent data from IntoTheBlock reveals that $SHIB has experienced a 16% increase in large holders’ netflow over the past week. These large holders, often referred to as whales, are wallet addresses that own more than 0.1% of SHIB’s circulating supply.

An increase in netflow indicates that more $SHIB tokens are flowing into whale wallets than out, signaling an accumulation trend. This activity reflects strong confidence in SHIB’s potential upside, as institutional investors and major holders continue to stockpile the token.

Why This Matters: Whale accumulation typically reduces the circulating supply of an asset, creating upward pressure on its price if demand remains constant or grows. This buying trend often encourages retail investors to hold their positions or even buy more, amplifying the rally.

Reduced Selling Pressure Supports the Rally

In addition to whale accumulation, SHIB’s price rally has been bolstered by a noticeable reduction in selling activity. According to Santiment, Shiba Inu’s Network Realized Profit/Loss (NRPL) metric has been negative, indicating that many traders who sold SHIB recently did so at a loss.

This trend has discouraged further selling, as traders are now more likely to hold their positions in hopes of recovering or maximizing their profits. As a result, reduced selling pressure has created an environment conducive to price growth.

SHIB Price Analysis: What’s Next?

At the time of writing, Shiba Inu is trading at $0.000022, with the potential to breach significant resistance levels in the coming days. Analysts are closely monitoring the following scenarios:

Bullish Scenario:

If whales continue their accumulation and selling pressure remains minimal, SHIB is likely to break resistance at $0.000026.

A sustained rally could see the token revisit its monthly high of $0.000033, further cementing its bullish momentum.

Bearish Scenario:

If traders begin to take profits and selling pressure increases, SHIB could retrace below $0.000021, shedding some of its recent gains.

A decline in whale activity or an overall market correction could also contribute to a bearish reversal.

Why SHIB’s Rally Matters

Shiba Inu’s recent performance highlights the growing role of whales and market sentiment in driving meme coin rallies. As one of the most popular and widely traded meme tokens, SHIB’s ability to maintain its momentum will likely set the tone for similar assets in the crypto space.

With a loyal community, ongoing ecosystem developments, and increasing interest from institutional investors, SHIB’s path to a new monthly high remains a key storyline in the current crypto market.

Final Thoughts

As Shiba Inu inches closer to its $0.000033 monthly high, traders and investors should remain cautious and monitor market dynamics closely. Whether the coin breaks out or retraces, the current rally underscores the importance of whale activity and investor sentiment in determining price trends.

Stay tuned for updates as SHIB continues to navigate its way through this exciting phase.

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