A trader has claimed that Shiba Inu (SHIB) is ready to leave its consolidation phase. On X, analyst Kamran Asghar posted a chart comparing the current setup to past rallies in 2021 and 2024.
In those cycles, SHIB gained 1,154% and 501% after months of sideways trading. Asghar said SHIB could now be preparing for another “massive expansion” if the same pattern plays out.
At press time, SHIB trades at $0.00001244. The token has gained 1.8% in the past 24 hours, with a market capitalization of $7.32 billion and nearly $197 million in daily volume.
Even with these gains, SHIB price remains down more than 85% from its October 2021 all-time high of $0.000088. That gap shows the scale of recovery still needed. On TradingView, SHIB trades just above support at $0.0000120 but below its 50-day EMA ($0.00001293) and 200-day EMA ($0.00001406). Analysts say a break above the 200-day EMA would confirm a bullish reversal.
The Relative Strength Index (RSI) is around 46. An RSI below 30 shows oversold conditions, while above 70 signals overbought. At 46, SHIB is neutral but leaning closer to the oversold side, where buyers often re-enter.
On-Chain Data Shows Whales Accumulating, But Burn Activity Weak
Santiment data shows that SHIB’s daily active addresses have been trending higher since July, suggesting more wallets are interacting with the token. Large holders, or whales, have also been active. Wallets holding over 1 billion SHIB have added to their balances, while mid-sized wallets (100 million to 1 billion SHIB) have reduced holdings. This shows accumulation at the top while smaller players exit.
Large transfers above $100,000 and $1 million have spiked several times this month, confirming whale involvement.
The Shibarium layer-2 blockchain is also active. ShibariumScan reports over 1.54 billion transactions completed in total, with 3.58 million in the past 24 hours. This steady usage shows that SHIB’s ecosystem is functioning beyond speculation.
Meanwhile, Shibburn reports 962,853 SHIB burned in the past 24 hours, a 466% increase from the previous day. This marks a short-term improvement in burn activity. However, the figure remains small compared to SHIB’s vast circulating supply of 584 trillion tokens. Since launch, more than 410 trillion SHIB have been permanently burned, but supply is still among the largest in crypto, which limits the immediate price impact.
Shiba Inu Exchange Reserves Hit Multi-Year Lows
Data from CryptoQuant shows SHIB exchange reserves are at their lowest in years. When fewer tokens are held on exchanges, there is less available for quick selling, which supports bullish accumulation.’
In derivatives, CoinGlass reports SHIB open interest near $189 million, down from a July peak of $328 million. Lower open interest means less speculative leverage driving price swings. Funding rates remain neutral, showing the futures market is balanced between long and short positions. This reduces the chance of sudden liquidations.
Across the wider memecoin sector, conditions are mixed. Dogecoin (DOGE) trades near $0.217 and Pepe (PEPE) near $0.0000100. Both are steady, showing no major liquidity shift into meme tokens. If capital inflows remain flat across the sector, Shiba Inu may find it harder to attract new demand.
The trader’s bullish view mirrors SHIB’s past rallies, and some conditions line up — whales are accumulating, exchange reserves are low, and Shibarium use remains strong. But SHIB’s weak burn activity, heavy supply, and resistance at the 200-day EMA remain barriers.
