The latest crypto market seems to have had a bit of relief, having stayed in red for a while. However, not all cryptocurrencies in the top 50 market cap have recovered.
Meme token, Shiba Inu [SHIB] posted some gains. However, at the time of writing, the altcoin favored the red. Additionally, the selling pressure across the entire crypto market was not over. So what could have triggered a possible recovery for SHIB?
Whales in charge
According to Whalestats, Ethereum [ETH] whales have been buying SHIB. The volume purchased over the last 24 hours of 27 July was as high as $3.54 million, amounting to 334 billion SHIB tokens.
These were accumulated in two massive transactions. An Ethereum whale named “Gimli” initially bought 187 million SHIB tokens.
🐳 ETH whale “Gimli” just bought 187,000,000,000 $shib ($1,991,550 USD).
Ranked #248 on WhaleStats: https://t.co/3bvrsUeq69
Transaction: https://t.co/950Rn6tTiY#SHIB #ShibArmy
— WhaleStats (free data on crypto whales) (@WhaleStats) July 27, 2022
About one hour later, Whalestats reported that another ETH whale named “Bluewhale 0195” bought another 147 million SHIB.
🐋 ETH whale “BlueWhale0159” just bought 147,000,000,000 $shib ($1,556,730 USD).
Ranked #373 on WhaleStats: https://t.co/b0sIz9f1O1
Transaction: https://t.co/pz5D8NcnqJ#SHIB #ShibArmy
— WhaleStats (free data on crypto whales) (@WhaleStats) July 27, 2022
Since the announcement, SHIB has continued to gain momentum. It recorded a 1.36% uptick as of 27 July, surpassing many other cryptocurrencies’ growth.
Expected run or big surprise?
The gains posted by SHIB may have come as a surprise or were justified by whale action.
Based on the price analysis, SHIB should not have gone up on uptick despite an increased burn rate. The chart given below revealed that its previous levels did not predict a bullish move.
According to the chart, the Awesome Oscillator (AO) was on the verge of falling below equilibrium, indicating that SHIB was to follow a bearish move.
Similarly, the On-Balance-Volume (OBV) showed that SHIB was supposed to move sideways.
With this analysis, the whale pump into the SHIB ecosystem could have affected the price uptick. Before we conclude that they played a part, let’s see what other metrics suggest.
Santiment data showed that SHIB had not necessarily had a significant volume increase. The one-day circulation also decreased— from 3.32 trillion to 996.17 billion. Certainly, while supply had gone up. However, the possibilities of a strong rally might be slim due to these metrics.
Source: Santiment
Besides the whale accumulation, Shiba Inu has also secured a partnership with Shopping.io, the crypto-based eCommerce payment software. The CEO confirmed this development in a tweet.
Big things coming to @Shibtoken + @shopping_io ❤️ https://t.co/J86oBYXjhG
— Arbel Arif | Shoppingio.eth (@ArbelArif) July 26, 2022
Even with the partnership, the possibility of a SHIB rally looks low. However, wherever SHIB goes next might determine if the metrics were accurate.
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