Whale’s Attempt to Push Shiba Inu (SHIB) Price Up 36% May Fail

The top meme coin Shiba Inu (SHIB) has recently caught the attention of the largest investors, or “whales.” A key on- chain indicator has indicated a potential buying opportunity, prompting these large investors to accumulate more SHIB Token .

However, gains may not come as quickly as expected. Market sentiment around the Shiba Inu remains bearish, suggesting the coin could continue to decline.

SHIB Whale Joins The Game

The volume of large Shiba Inu related transactions has doubled since Sunday. Data from IntoTheBlock shows a stunning 406% spike in large transactions — those exceeding $100,000 — over the past three days.

To put things in perspective, the volume of major transactions on Sunday was SHIB 395 billion. But by Tuesday, this figure had jumped to SHIB 2.51 trillion. In dollar terms, this equates to a jump from $5.31 million to $33.41 million, highlighting a significant increase in market activity.

The reason for this surge in whale activity. This group of investors is simply taking advantage of the low value of the coin. Since the price of Shiba Inu peaked at $0.000016 on August 24, its value has dropped by 19%. This price drop has resulted in a negative market value to realized value (MVRV) ratio, suggesting that the meme coin may be undervalued, presenting a buying opportunity for those looking to “buy the dip.”

At the time of writing, SHIB 's 30-day and 90-day MVRV ratios are -2.70 and -13.24 respectively, indicating that its current value is lower than the Medium price of all Token in circulation. Historically, this is a buy signal, as investors can accumulate the asset at a low price in the hope of selling it at a higher price.

SHIB Price Prediction : 36% Rally Under Threat

However, these gains may be delayed as bearish sentiment around the Shiba Inu continues. For example, the Elder-Ray Index (ERI), which tracks the balance between buying and selling pressure, has been negative since Monday, indicating that sellers are in control while buying activity has weakened. Furthermore, the DMI also reflects a bearish trend. The negative directional indicator (red) is above the positive directional indicator (blue), reinforcing that selling pressure is currently stronger than buying demand.

If buying pressure continues to weaken, the value of SHIB could continue to decline, possibly hitting its August 5 low of $0.000010. This would be a disadvantage for whales who are accumulating the meme coin, hoping to push its value up to 36%. This rally would only occur if demand increases and the price of Shiba Inu moves towards the resistance level at $0.000018.

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