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Shiba Inu Poised for a Significant Move as Whale Activity Dries Up
Shiba Inu (SHIB) is showing signs of a potential breakout after a period of muted trading and reduced activity among large holders. The token’s recent pullback tracked wider crypto market weakness led by Bitcoin and major altcoins, and on-chain metrics now point to diminished engagement from whales and so-called smart money.
Whales and Smart Money Reduce SHIB Exposure
Analytics platform Nansen reports that savvy money wallets now hold 40.42 billion SHIB, down from a July high of 48.6 billion. Those holdings have been largely unchanged since Aug. 5. Similarly, whale balances have dropped to roughly 45 billion SHIB from last month’s peak of 47.6 billion. The pattern suggests risk aversion among top investors after SHIB fell roughly 60% from its November highs.
Shibarium Activity and Ecosystem Health
The broader Shiba Inu ecosystem has seen a slowdown. Shibarium, the project’s layer-2 network launched in 2023 to add utility and scalability, is not registering meaningful activity: total value locked (TVL) has fallen to $1.79 million and stablecoin flows are effectively absent. The ecosystem lists only 17 DeFi protocols, including Shibarium, WoofSwap, ChewySwap, and DogSwap.
Shibarium was designed to move SHIB beyond meme status by providing utility and by increasing token scarcity: some fees on the network are converted from BONE into SHIB and subsequently burned, which can support long-term supply pressure if usage rises.
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Technical Picture: Symmetrical Triangle and Low Volatility
On the daily timeframe, SHIB has traded sideways and consolidated around the 50-day and 100-day exponential moving averages (EMA). The Average True Range (ATR) has compressed, indicating low volatility ahead of an anticipated move.
Price action has formed a symmetrical triangle, with the pattern’s two converging trendlines signaling an imminent breakout. A bullish resolution could propel SHIB to the next major resistance around $0.00001600—the July 22 high. Conversely, a bearish breakdown might target support near $0.00001015, the June low.
What Traders Should Watch
Key on-chain and technical indicators to monitor include whale and smart-money holdings, Shibarium TVL and transaction activity, the number of active DeFi protocols in the ecosystem, ATR for volatility expansion, and the 50/100-day EMAs for trend confirmation. A surge in on-chain activity or renewed buying by large wallets could validate a bullish breakout; continued outflows and low TVL would raise downside risk.
For investors and traders focused on crypto markets, tracking these metrics alongside broader Bitcoin and Ethereum moves will be essential to gauge SHIB’s next directional leg.
Source: crypto
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