Shiba Inu (SHIB) edged higher on Monday after bouncing off critical support near $0.00000462, with on-chain data revealing renewed accumulation by large holders. The meme coin's rebound is gaining traction as whale wallets expand their positions and exchange inventories shrink, though a decisive breakout remains unconfirmed.
Whale Accumulation Signals Growing Confidence
According to Santiment, the largest non-exchange SHIB addresses held 533.41 trillion tokens on Sunday, up from 533.10 trillion on Tuesday. That increase translates to roughly 310 billion SHIB accumulated over the week. Meanwhile, exchange balances declined to 138.74 trillion SHIB on Monday from Friday's peak of 138.96 trillion.
Declining exchange supply typically reduces immediate selling pressure, and when paired with rising non-exchange whale holdings, it suggests large investors may be moving tokens into private wallets for longer-term holding. Whale transaction activity also spiked on Friday, with 10 transfers exceeding $1 million each, indicating heightened interest as prices approached support.
While high-value transactions can also represent sales or transfers, the concurrent drop in exchange balances adds weight to the accumulation thesis. Continued whale buying could help absorb available supply around current levels, underpinning SHIB's recovery.
Derivatives Market Turns Bullish
Speculative demand for Shiba Inu remains firm. CoinGlass data shows SHIB futures open interest rose about 4% over the past 24 hours to $31.71 million, signaling that traders are committing fresh capital. When open interest climbs alongside price, it often reflects growing confidence in an upward move, though leveraged positions can amplify volatility if the market reverses.
Funding rates have also turned positive, climbing to 0.0100% on Monday from 0.0014% on Friday. A positive funding rate means long-position holders are paying shorts, indicating that bullish sentiment is gaining traction. However, excessively high funding rates can leave the market vulnerable to a long squeeze if positioning becomes too crowded.
Technical Outlook: Double-Bottom in the Making
Shiba Inu's intraday recovery from $0.00000462 is forming the early structure of a potential double-bottom reversal. Buyers have defended this level twice, strengthening the case for a bullish turnaround. The pattern's neckline sits near Tuesday's high at $0.00000506; a decisive daily close above this level would confirm the double bottom and signal that buyers have regained control.
The Relative Strength Index (RSI) stands at 51, slightly above its neutral midpoint, suggesting that bullish momentum is recovering but remains modest. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator shows the MACD line still below its signal line, with a bearish histogram expanding despite both lines being in positive territory. This divergence indicates that the recovery is still in its infancy and needs further confirmation.
A sustained move above the psychological $0.00000500 level would improve SHIB's near-term outlook, with the next target being the double-bottom neckline at $0.00000506. A confirmed breakout could extend gains toward the 50% Fibonacci retracement at $0.00000538, a level that capped recovery attempts in late July. Clearing that could open the door to higher resistance zones.
On the downside, $0.00000462 remains the most critical immediate support. A decisive daily close below this level would invalidate the double-bottom pattern and weaken the recovery narrative, potentially exposing the Fibonacci anchor and previous swing low at $0.00000405.
For now, whale accumulation, declining exchange balances, and firmer derivatives demand support SHIB's rebound. However, a close above $0.00000506 is required to confirm that the meme coin is embarking on a more sustainable recovery. Similar accumulation patterns have been observed in other cryptocurrencies, such as Cardano whales adding 110 million ADA and BNB eyeing a breakout as derivatives data turns bullish.
This article is for informational purposes only and does not constitute financial advice.
