Shiba Inu (SHIB) could be gearing up for a major rebound after a sharp decline this week, with fresh on-chain data pointing to significant accumulation by whales and “smart money” investors. Despite the broader market downturn, several bullish signals suggest that SHIB may soon rally as much as 25%.
Technical Analysis Signals Potential Reversal
The Shiba Inu price recently dropped to a low of $0.00001178, a level that has consistently acted as strong support since August. This area now forms the base of a triple-bottom pattern, a bullish chart setup that typically signals an upcoming reversal.
The neckline of this pattern sits near $0.00001481, aligning with the Murrey Math Lines’ key resistance zone.
If the pattern plays out, SHIB could stage a breakout rally of around 25%, targeting the neckline. However, this outlook will be invalidated if prices slip decisively below the $0.00001178 support level. In such a scenario, SHIB would confirm a descending triangle, a bearish structure that could open the door to further downside.
Whale Accumulation Provides Support
Backing up the bullish case, large holders have been aggressively accumulating Shiba Inu during the recent sell-off. Data from Nansen reveals that whales now control over 100.52 billion SHIB, a sharp increase from just 38.52 billion last month.
This means whales have added more than 62 billion tokens, worth approximately $745,000, in just a matter of days.
The trend isn’t limited to whales. So-called “smart money” wallets have also boosted their exposure, increasing SHIB holdings by 98% in the past month to 12.46 billion. Such accumulation often signals that well-capitalized investors are betting on a rebound.
Exchange Outflows Strengthen Bullish Case
Another positive sign for SHIB is the decline in exchange balances. Tokens held on exchanges have dropped to 282.23 trillion, down from 290 trillion in August. Falling exchange reserves typically suggest that investors are moving coins to self-custody wallets instead of preparing to sell, reducing near-term selling pressure.
Additionally, Shiba Inu’s burn rate has surged by 112% this week, permanently removing millions of tokens from circulation. With supply gradually shrinking and demand potentially strengthening, SHIB could face upward pressure in the weeks ahead.
ETF Speculation Adds Fuel
Looking forward, speculation is building that Shiba Inu could be included in future spot ETF applications. The SEC’s new framework for crypto listings already covers assets with regulated futures products, and SHIB meets that requirement thanks to its Coinbase-listed futures contract. A spot SHIB ETF would open the door for broader institutional adoption and could serve as a major catalyst for price growth.
While risks remain, particularly if SHIB loses its key support at $0.00001178, the combination of whale accumulation, exchange outflows, token burns, and potential ETF interest paints a bullish picture. If current trends continue, Shiba Inu could indeed be on track for a 25% rally in the near term.