SHIB Price Surges Over 7% as Whale Activity Sparks Rally

The Shiba Inu (SHIB) meme coin has experienced a dramatic surge in its token burn rate over the past 24 hours. Per Shibburn, a SHIB burn token tracker, the rate of burn soared by over 16,600% as of June 4th. This surge has been accompanied by a rally in the SHIB price despite starting the day on a low note, trading at $0.00002381. During the day, bullish momentum has strengthened, with price soaring to an intra-day high of $0.00002627 before facing resistance. 

At the time of writing, the Shiba Inu (SHIB) price was exchanging hands at $0.00002564, a 7.67% rally from the support level. Concurrently, SHIB’s market capitalization and 24-hour trading volume increased by 7.65% and 44.48%, respectively, to $15,103,867,711 and $15,103,867,711, respectively.

According to Spot On Chain, during this rally, an early SHIB whale woke up after 36 months of inactivity, accumulating over 323 billion Shiba Inu tokens. Moreover, as per the report, the whale used close to 1000 wrapped Ethereum (WETH) to buy the first batch of 149.3B SHIB and a second batch of 173B SHIB. According to the blockchain surveillance platform, these transactions summed up to 2,188 WETH for 323 billion Shiba Inu tokens worth $8.29 million.

Will SHIB Price Rally to $0.0001?

Amid these developments, analysts have weighed in on the potential of the SHIB price rally. SHIB Knight, a crypto analyst, has forecast that the SHIB price could be on the verge of a breakout, setting the target at $0.0001 this month. According to the analysts, the SHIB trend is nearing a breakout from its 60-day downtrend, which may put a rally toward its projected target. 

This projection is backed by another analyst, Javin Marks, who suggests that a rebound to $0.000081 could precede a rally to $0.0001533. Eunice Wong, another analyst, also points to the “second leg” rally, which could propel SHIB to a price above $0.000.

However, despite this, reclaiming the $0.00003 would be challenging since data from IntoTheBlock suggest that around 124k addresses with over 92 trillion SHIB tokens bought between $0.000025 and $0.00003. 

SHIB/USD Technical Analysis

On the SHIBUSD 4-hour price chart, the MACD trend in the positive region suggests that bullish momentum is strengthening, hence the potential for a continued rally. The histogram also backs this trend with its bars becoming larger, which is a bullish signal since it indicates rising buying pressure.

With the Chaikin Money Flow (CMF) in the positive region, a positive trend is also anticipated to continue. This CMF trend suggests money is flowing into the SHIB market hence a growing investor confidence in the bull rally ahead. 

However, the stochastic RSI warrants caution since it is in the overbought region with a rating of 90.18. This level suggests that the market may face a potential correction before the continuation of the bullish momentum.