Shiba Inu Coin: Pay Attention To This After Its Latest Move

Meme coins tend to take a big hit when the market crashes and that was the case with Shiba Inu.

While most coins started at the end of July, the dog-themed memecoin kicked off its latest bearish trajectory about two weeks ago.

The bearish head start for Shiba Inu paved the way for a broader pullback. The meme coin retraced by 25% from its local top on 21 July. 

Interestingly, its bigger brother Dogecoin tanked by a bigger margin during the same period, validating the observation that top memecoins suffered a bigger crash.

SHIB’s intense pullback blasted through 0.5 to 0.618 Fibonacci zone which historically tends to be a pivot zone. This confirmed a strong bearish momentum, which signaled more potential downside.

Shiba Inu Enters a Noteworthy Accumulation Zone

Shiba Inu’s latest pullback drew its price action closer to the $0.000012 price level. Past bearish outbursts that pulled the price towards the same level in the last 12 months resulted in accumulation and recovery.

SHIB might experience a demand resurgence if a similar outcome occurs after the latest pullback. Moreover, Shiba Inu might be attractive to short term traders considering its price swings.

A look at its performance over the last few months revealed that significant upside occurred after every sizable pullback. 

A strong rally from the accumulation zone was probable, especially accounting for the fact that SHIB price was also severely discounted from its March 2024 top.

For reference, SHIB’s press time price tag was equivalent to a 74% discount from the peak in March.

The discount was even steeper compared to its historic all-time high price achieved in November 2021.

Although there were multiple signs in favor of SHIB’s potential upside, its potential downside was also noteworthy.  Extended sell pressure highlighted the risk of more downside.

Ultimately, the outcome will be determined by whether sell pressure will cool enough to pave the way for robust demand.

SHIB Whales are on The Move as the Discounted Price Presents an Opportunity

Although Shiba Inu has been experiencing a downward trend for the last 2 weeks, spot flow data revealed that spot flows were limited.

Especially compared to the level of spot outflows that the memecoin experienced in November and December 2024.

Derivates demand was also much lower compared to January 2025 levels. In other words, derivatives-induced volatility might not be much of a concern for Shiba Inu traders.

More importantly, this latest pullback was already attracting demand from whales looking to buy at discounted prices.

Large orderbook statistics revealed that whales acquired about $1.74 million worth of Shiba Inu tokens on Binance spot in the last 48 hours.

Coinbase whales also acquired about $235,000 worth of SHIB in the last 2 days. Whales also acquired about $3 million worth of Shiba Inu perpetuals during the same period.

The whale purchases were moderate and likely not enough to yield any upside, they highlighted the dollar-cost-averaging (DCA) activity already at play.

Meanwhile, Shiba Inu just celebrated its 5th birthday since its launch. This meant it had already gained veteran status in the memecoin segment and also in terms of dog years. These factors may offer more validation alongside its heavily discounted price tag.

Interestingly, 79% of all SHIB holders acquired the memecoin more than 12 months ago. This meant most of the coins were owned by long-term holders who were unlikely to sell at a loss.

According to IntoTheBlock, only 34% of holders were in profit at its recent price tag. Also, 74% of Shiba Inu holders were whales, which was reassuring for long-term holders.

The post Shiba Inu Coin: Pay Attention To This After Its Latest Move appeared first on The Coin Republic.