SHIB Price Plunges: Whale Activity Amidst Market Sell-Off

The Shiba Inu (SHIB) price experienced a significant drop, falling below $0.000015 on February 3rd, 2025, for the first time in five months. This sharp decline follows a 32% drop over the weekend, leaving many investors wondering about the future of SHIB.

Shiba Inu Price Decline and Market Factors

The recent SHIB price plunge is attributed to several factors, including broader market instability fueled by trade war concerns involving tariffs on China, Mexico, and Canada. This macroeconomic uncertainty has created a risk-off sentiment, leading investors to move away from speculative assets like SHIB. Increased inflation concerns further contributed to this sell-off, as investors seek more stable investment options.

It's notable that SHIB's 30% decline outpaced losses seen in other major altcoins, suggesting factors beyond the general market downturn are impacting SHIB specifically. This might be due to pre-existing bearish catalysts impacting the token.

Whale Accumulation: A Sign of Hope?

Despite the bearish market sentiment, on-chain data reveals a significant increase in large transactions involving SHIB. Data from IntoTheBlock shows a surge in Large Transactions—transfers from wallets holding at least 0.1% of SHIB's total circulating supply—from 1.5 trillion SHIB on January 31st to 4.3 trillion SHIB by February 2nd. This nearly 200% increase suggests that whales are accumulating SHIB at these lower prices.

Historically, this type of whale accumulation during price dips has helped stabilize SHIB, absorbing selling pressure. If this trend persists, the $0.000014 level could provide support, preventing further price drops.

Shiba Inu Price Forecast: Bullish and Bearish Scenarios

While whale accumulation offers a glimmer of hope, the situation remains complex. Elliott Wave analysis suggests a potential corrective ABC pattern, with the recent drop marking the end of Wave C. This could precede a bullish upswing, particularly if whale accumulation continues. The $0.000013 level aligns with a historical support zone, and reclaiming $0.000015 could trigger a move towards $0.000018 in the short term.

However, the risk of further downside remains. Escalating trade tensions or a worsening overall crypto market sentiment could push SHIB below $0.000013, indicating a deeper Wave C breakdown and potential decline toward $0.000010. The MACD histogram reinforces this risk, highlighting the potential for continued selling pressure despite whale activity.

Bullish Scenario:

• SHIB reclaims $0.000015.
• Whale accumulation continues.
• Potential price increase towards $0.000018.

Bearish Scenario:

• SHIB fails to hold $0.000012.
• Further declines towards $0.000010 or lower.
• Prolonged downtrend.

Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Market conditions are volatile, and investing in cryptocurrencies involves significant risk. Conduct thorough research before making any investment decisions.

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