Shiba Inu Price Prediction- Analyst Predicts Recovery as Whales Purchase 400B SHIB Despite Crashing Price

Shiba Inu price has crashed today, August 2, with a 1.79% drop to trade at $0.000012. Despite this fall, an analyst says that recovery is not far away. He notes that it might get to $0.0000239. Considering that 1 trillion SHIB tokens are no longer on exchanges, his forecast might play out.

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Analyst Eyes $0.0000239 Shiba Inu Price

Shiba Inu price might be crashing, but bulls are not giving up. Analyst Joe Swanson is among these bullish traders. In a recent X post, he points out two patterns that suggest gains might happen soon.

The first is a cup and handle. He draws out how this pattern has come to be from the May highs, to June lows, and the most recent July highs. However, it was after reaching $0.00001597 that the SHIB price started to drop again. Swanson is not worried about this correction. In his analysis, he says it just confirms that Shiba Inu might make another leg up. He adds that the correction is the handle of this bullish pattern.

Oftentimes, the cup and handle pattern shows the price is taking time to cool off before it starts the next stage of an uptrend. In that case, getting to resistance at $0.00001710 is possible. After this, SHIB price will push further by another 36% to get to $0.0000239.

Shiba Inu Price Chart (Source: X)What makes this price forecast by Swanson more plausible is that he identified a second bullish pattern: a double bottom. Here, the support lies at $0.0000103. SHIB getting to $0.000017 means that the double bottom will also be confirmed. However, the only way that this forecast plays out is if the price defends support at $0.0000103. Failure to do so might trigger a crash in price.

If you’re looking for a more detailed higher time frame you can refer this Shiba Inu price prediction curated by our well known analysts.

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Whales Buy The Dip and Weekly SHIB Burn Soars

The analyst mentioned that the strength of this setup lies in whale activity. That might be happening after the netflows of large holders increased from 26 billion SHIB to 422 billion SHIB within 24 hours. That means whales purchased nearly 400 billion tokens despite the crashing crypto market.

SHIB Large Holder Netflows (Source: IntoTheBlock)In the meantime, the SHIB burn rate has soared over the week that Shiba Inu turns 5. More than 629 billion tokens have been burned, with the burn rate increasing by more than 1,700%. That means that by including the whale buys here, more than 1 trillion SHIB has been shifted.

These two things, whale buying and SHIB burns, are bullish for the Shiba Inu price. It means there are fewer tokens left for sellers now. It also adds a boost to buying pressure that has been growing weak since mid this week.

To sum up, the ongoing drop in SHIB price has not watered down bullish forecasts. Instead, one analyst says it might be the price getting a breather before its next rally. Whales and a spike in SHIB burns are also adding weight to the possibility of recovery happening.

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Frequently Asked Questions (FAQs)

1. Why is the Shiba Inu price down today?

Shiba Inu price is down today because of a bearish outlook across the broader cryptocurrency market.

2. Will the SHIB price recover?

SHIB price could recover if there is a surge in whale activity and a spike in the burn rate.

3. How will whale buying and token burns affect Shiba Inu?

Whale buying and a surge in the SHIB burn process are likely to be bullish for Shiba Inu.

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