Shiba Inu whales buy $63.7M in SHIB amid 12% crash – recovery ahead?

Shiba Inu (SHIB) has plunged 12.5% in the past 24 hours, wiping out recent gains, but a group of deep-pocketed investors is betting big on a recovery. Blockchain data reveals Shiba Inu whales have accumulated 4.66 trillion tokens worth $63.7 million during the dip, marking their largest buying spree in two months.

The meme cryptocurrency, currently trading at $0.00001353, is testing crucial support at $0.00001317. Market analysts are divided on whether the Shiba Inu whales’ aggressive accumulation can offset selling pressure from retail traders, 27% of whom currently hold profitable positions.

Shiba Inu whales go on shopping spree

Data from IntoTheBlock shows addresses holding at least 0.1% of SHIB’s circulating supply have significantly increased their holdings.

“When Shiba Inu whales accumulate at this scale during a downturn, it typically signals their confidence in a rebound,” said Marcus Sotiriou, analyst at GlobalBlock.

The $63.7 million investment comes as SHIB erased most of its July gains in a single day. The Shiba Inu whales’ activity represents a calculated gamble that the token will bounce from its current support level and retest $0.00001435 in the coming days.

Profit-taking risks loom despite whale support

While the Shiba Inu whales are buying, nearly a third of active addresses could soon become sellers. “27% profitability is a critical threshold,” noted IntoTheBlock researcher Juan Pellicer. “Historically, when more than 25% of holders are in profit, we see increased sell orders.”

The concentration of profitable wallets raises concerns that retail traders might cash out gains, potentially undermining the Shiba Inu whales’ efforts to stabilize the price. Some analysts warn SHIB could drop to $0.00001188 if support fails.

Technical outlook: make-or-break moment for SHIB

TradingView charts show SHIB is at a pivotal technical juncture:

• Bullish scenario: Holding $0.00001317 could fuel push toward $0.00001553

• Bearish risk: Breakdown may trigger 10% drop to $0.00001188

“The Shiba Inu whales are providing a floor, but broader crypto market sentiment will decide if this translates to recovery,” said FxPro analyst Alex Kuptsikevich.

With Bitcoin and Ethereum also under pressure, SHIB’s fate may depend on whether the whales can outweigh retail selling.

Key points:

• Shiba Inu whales have acquired 4.66 trillion SHIB ($63.7M) during price dip

• 27% of holders are in profit zone, creating potential sell pressure

• Token must hold $0.00001317 to avoid further declines