Shiba Inu (SHIB) Price Teases Breakout From 4-Year Consolidation Phase as Whales Accumulate 530T Tokens

SHIB price is teasing a breakout from a 4-year consolidation phase, fueled by whales accumulating 530 trillion tokens and an 11,000% surge in SHIB burn rate.

In the last four years, SHIB price has been trading in a tight consolidation range between $0.000005 and $0.000096. The meme coin entered this range in mid-2021 following a parabolic bull run which was fueled by Vitalik Buterin’s 400 trillion SHIB burn.

However, in the last year, Shiba Inu price has shown signs of breaking out of this range. Earlier in 2024, it broke the resistance at $0.14, and it is now attempting to convert this level into support.

To successfully flip the market structure, the price needs to move above the higher moving average of $0.0182. If the price shifts above this MA and targets the next resistance at $0.000037, then Shiba Inu will be on the path to breaking out of the four-year consolidation range and possibly create a fresh all-time high of $0.00025.

Conversely, the market’s attention is currently drawn towards Bitcoin’s all-time high, and as BTC’s dominance rises, it may impact Shiba Inu price moves. This may prolong SHIB’s consolidation pattern, causing a drop to $0.0000055.

Shiba Inu price’s breakdown from the four-year consolidation range may be influenced by whale accumulation.

Why it matters: The 2021 SHIB rally, where Shiba Inu price shot up 27,020,216%, was triggered by Vitalik’s 400T token burn.

Despite the meme coin losing 99% from its all-time high, data from blockchain analytics firm Token Glass shows that large cryptocurrency investors, known as whales, have been scooping up Shiba Inu tokens.

In the last 24 hours, these whales have been accumulating SHIB at a rapid rate, adding 530 trillion Shiba Inu tokens to their wallets. This is a staggering amount, considering that the total SHIB supply is 549 trillion.

This accumulation is evident as the net inflow to cryptocurrency exchanges has dropped to zero, indicating that whales are not selling their SHIB holdings. Instead, they are focused on accumulating more of the meme coin.

The whale accumulation against the falling supply is bullish for the Shiba Inu price prediction. If demand for the meme coin surges abruptly at this point, it may trigger a massive price rally.

The SHIB burn rate is rapidly surging, and this may also support a bullish price breakout.

Data from Shibburn shows that in the last 24 hours, this burn rate has increased by 11,000%, and over 28M tokens have been removed from the circulating supply.

This surge also adds to the bullish factors that may cause a SHIB supply squeeze in the near future, which will cause a bullish breakout. Moreover, given that the last SHIB breakout in 2021 was caused by a massive surge in the burn rate, a repeat of this trend will aid massive gains to the upside.