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Shiba Inu (SHIB) appears to be preparing for a major price rally. Although the second largest meme coin has not followed the path of Bitcoin (BTC) yet, the SHIB community is anticipating a huge breakout. Bitcoin, the largest cryptocurrency on the market, has been riding on positive momentum as it inches closer to its all-time high (ATH).
In the meme sector, Dogecoin (DOGE) has followed the BTC price trajectory as it nears the crucial $0.18 price level. Shiba Inu has a lower price correlation to Bitcoin compared to DOGE. However, the dog-themed meme coin has the potential to trigger a more broader price rally in the near future.
Large holders, or whales, are anticipating this price movement. They are buying SHIB tokens in huge numbers ahead of this potential rally. More than 1.3 trillion SHIB coins, according to CryptoQuant, were withdrawn from cryptocurrency exchanges on Oct. 29. This huge rise in exchange outflows shows the strong buying trend for the coin.
The buying spree for whales is crucial. They are renowned for holding a coin for the long term without indulging in short term or panic selling. Whales typically do not put intense selling pressure on a coin. For Shiba Inu, the rising whale purchase is a strong bullish signal, which is critical for its potential price rally.
Shiba Inu potential price breakout
Meanwhile, the meme coin is currently trading at $0.00001854 after a decrease of 1.56% in the last 24 hours. Shiba Inu was trading at $0.00001948 almost 15 hours ago, and it looked like more gains would come. However, the coin has faced a dip since then. This came as a surprise, as other coins like DOGE and BTC have been witnessing price increases.
But, as mentioned above, the SHIB price typically does not follow the trajectory of these coins. The price dip witnessed today can be considered a healthy correction ahead of a potential price breakout. Moreover, whales are not giving up on the meme coin, and their frequent buying activity can inject bullish momentum into the coin.
Alex Dovbnya
Vladislav Sopov
Dan Burgin
U.Today Editorial Team