Shiba Inu price continues to underperform other meme coins this year. It has crashed by 16% from its highest point this month, and all its attempts to recover have found substantial resistance. This article explores whether it is safe to buy the SHIB coin as whales dump it.
Whales Dump SHIB Coins
Whales are large investors who are widely regarded as more experienced and sophisticated than retail investors. Many experts look at their activity to predict whether its value will rise or fall in a certain period.
Data shows that Shiba Inu whales have been engaged in significant selling over the past few months, as the coin has continued to underperform. The selling is also likely because these investors are moving to other meme coins that are performing better, such as Popcat and Dogwifhat.
Whales now hold 724 trillion SHIB tokens, down from the year-to-date high of 743 trillion, meaning that they expect its price to keep falling. Their holdings today are at the lowest level since January last year.
READ MORE: Shiba Inu Price Prediction: Can SHIB Turn $10,000 Into $1M by 2030?
There are also signs that, despite its token burn, the number of SHIB tokens on exchanges has started to increase, indicating that some holders may have begun to capitulate. There are now 141.2 trillion Shiba Inu tokens on exchanges, up from 139.2 trillion in April.
The rising Shiba Inu tokens in exchanges means that the token burns are not having a major impact on the supply. Indeed, data shows that the SHIB burn rate has dropped sharply in the past few weeks.
Shiba Inu Price Technical Analysis
On the positive side, there are signs that the Shiba Inu price is on the verge of a strong bullish breakout. In a recent article, we highlighted the formation of a harmonic pattern and noted a strong bullish breakout, potentially reaching the highest point in 2024.
The daily chart shows that the SHIB coin has formed a cup and handle pattern with a depth of 40%. It is now in the process of forming the handle section and has moved slightly above the 50-day moving average.
Therefore, the most likely scenario is where the coin makes a strong bullish breakout and then surges to $0.00002443. This target price is based on a measurement of 40% from the upper side of the cup and corresponds to the highest point in January.
