Here’s Why Shiba Inu (SHIB) Price Could Rally 17X

Shiba Inu (SHIB) has experienced fluctuations in price, but analysts suggest a major rally could be approaching.

Recent market data and expert opinions indicate that despite bearish trends, SHIB has the potential for a notable upward movement. Shiba Inu has seen changes in whale activity, investor distribution, and technical patterns contributing to a price surge.

Shiba Inu Whale Activity and Market Influence

Data from Glassnode shows that early SHIB holders accumulated over 20% of the total supply at low prices before selling at market peaks.

This selling activity contributed to corrections in SHIB’s price, emphasizing the influence of large holders on the token’s volatility.

Source: X

Currently, the concentration of whale has reduced, which led to large holders controlling only 15.76% of the total SHIB. This is a change in control since many of the retail investors are now taking up positions in their stocks.

The flows have recently been negative, which implies that some big holders are taking their money elsewhere. However, whales still own about 74% of SHIB tokens, meaning that very large transactions can still have an impact on the price.

Traditionally, SHIB has had a certain type of trend where accumulation by the whales triggers an increase in the price, which determines the further course of action based on investors’ sentiment.

Analyst Predictions and Technical Signals

Crypto analysts remain divided on SHIB’s future, but some experts predict a substantial rally.

CryptoElites, a market analyst, suggested that SHIB has the potential for a 17x price increase. This expectation is based on historical price trends and technical indicators suggesting that SHIB may be in a long-term accumulation phase.

Source: X

Javon Marks, another crypto analyst, has set a bullish price target for SHIB at $0.000081, representing a 500% increase from current levels. Marks noted that SHIB has already broken through key resistance zones, a signal that could support further price increases.

“The breakout target at $0.000081 remains unchanged! As SHIB sustains its bullish momentum and uptrend, the possibility of a massive 500% upside remains well in play,” Marks stated.

Market correlation data shows that SHIB’s price movements have a 0.84 correlation with Bitcoin, indicating that SHIB often follows Bitcoin’s trends. If Bitcoin enters a bullish phase, SHIB could experience similar momentum, further supporting the case for a price rally.

Long-Term Holders and Market Sentiment

However, approximately 58% of SHIB holders have remained loyal despite facing the current price challenges. A study has revealed that 76% of all SHIB token holders have not sold it for the pastyear, and therefore such investors are incredibly bullish.

At the same time, 22% have held SHIB for between one and twelve months, and only 2% have held for less than one month. This suggests that a large number of SHIB tokens will remain in circulation and may not be sold in times of market volatility.

Source: IntoTheBlock

The current profit and loss distribution reveals that 37% of the hold position remains in a profit zone, 4% are still sticking to the purchase price, 59% are still in a loss zone.

The high percentage of holders at a loss may imply that the selling rate is not very high, hence implying that many investors may want to hold until prices rise further.

In the last one week, the daily figure for transactions above $100K has been established to be $151.03 million, which is a clear sign that big players are still engaging in trading of SHIB.

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