Whales Buy SHIB as Exchange Reserves Drop — Rebound May Be Near
Shiba Inu (SHIB) shows signs of a near-term rebound as on-chain fundamentals and technical patterns align. SHIB traded around $0.0000084 on Dec. 12, near its year-to-date low, about 75% below last November’s peak. Key on-chain signals: token burns rose 170% recently, bringing total burns above 410.75 billion, and exchange reserves fell from 366.1 trillion to 288.75 trillion SHIB this month, suggesting reduced sell-side liquidity. Whale holdings jumped to 96.67 billion tokens from a weekly low of 1.36 billion, indicating renewed accumulation by large holders and smart money. Technicals show a fall from a $0.0000075 bottom in November and formation of bullish patterns — a falling wedge and a small inverted head-and-shoulders — with an upside target near $0.00001 (roughly 20% higher). Confirmation would come from a move above the 50-day moving average and the wedge’s upper trendline. Primary keywords: Shiba Inu, SHIB, token burn, exchange reserves, whales. Secondary/semantic keywords: meme coin rebound, on-chain demand, falling exchange supply, inverted head-and-shoulders, falling wedge. Traders should watch exchange supply metrics, whale wallet activity, burn rate, and the 50-day MA for signs to enter or add to long positions; failing confirmation, volatility could persist around current levels.
Bullish
The article presents multiple converging bullish signals for SHIB that are relevant to traders. On-chain metrics show a marked decline in exchange reserves and a large increase in token burns — both reduce available sell-side supply and can support price. Whale accumulation (a jump from 1.36B to 96.67B tokens) signals renewed demand from large holders and smart money, which historically precedes rallies in low-cap meme tokens. Technical analysis adds confirmation: a bottom at $0.0000075, a falling wedge and an inverted head-and-shoulders pattern, and a clear resistance target near $0.00001 (~20% upside). Traders typically treat such a confluence (supply drain + whale buying + bullish chart patterns) as a bullish setup for short- to medium-term trades. However, confirmation depends on price breaking above the 50-day MA and the wedge’s upper trendline; failure to do so could keep SHIB range-bound or lead to renewed selling. In past cycles, meme coins have shown rapid rallies once exchange supply drops and whales accumulate (examples: PEPE and BONK spikes), but they can also be volatile and subject to quick reversals. Short-term impact: increased buying interest and higher volatility, presenting swing-trade opportunities. Long-term impact: marginal improvement in tokenomics if burns and reduced exchange supply persist, but sustained upside requires broad market risk appetite and continued demand beyond speculative whale moves.