Whales have resumed their Shiba Inu buying spree as the meme coin price declined alongside the global crypto market. According to the WhaleStats report, a top ETH whale picked up $3.22 million worth of SHIB tokens over the past 24 hours.
The Ethereum whale performed the purchase in two transactions, scooping over 311 billion Siba Inu tokens within minutes.
Shiba Inu’s Price Correction Attracts Top ETH Whales
Shiba Inu has been on the list of preferred assets among top Ethereum whales over the past few months. The whales actively packed large chunks of SHIB tokens between January and February. However, it appears the whales went on break, waiting for another opportunity to strike.
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A recent alert from the crypto tracking platform, WhaleStats, shows the 254th-biggest Ethereum whale purchased 311,998,734,794 SHIB tokens on April 20. The whale performed the transaction in two consecutive transactions.
The whale bought 194,114,774,578 Shiba Inu tokens worth $2,069,263 before initiating another transaction for 117,883,216 SHIB worth $1,256,643. The unexpected token accumulation comes as Shiba Inu’s price fell from its critical support level at $0.0000107.
Shiba Inu Price Outlook Amid Burn Rate Spikes
The recent price decline comes after several days of massive SHIB token burn by the Shiba Inu community to boost the meme coin’s price. In the days following the Shibarium PuppyNet launch, large chunks of Shiba Inu coins went into the dead wallets.Â
On April 20, the Shiba Inu token burn rate spiked by 3,500%, according to the burn tracking website, Shibburn. Following Shibburn’s hourly update, April 20 saw another 5,180% burn rate spike.Â
Given Shiba Inu’s massive circulation supply of tokens, the recent burn had little effect on the meme coin’s price. The token traded bearishly yesterday, with a 7.0% price decline, and has continued in the downtrend today.
SHIB is slightly recovering after forming three consecutive red candles on the daily chart. The bears have dominated the market, pushing SHIB close to its support zone.
Shiba Inu has dropped below its 50-day and 200-day Simple Moving Averages (SMA), a bearish sentiment for the short and long term.Â
Also, the Relative Strength Index (RSI) is 41.22, close to the oversold region of 30. The indicator is moving downwards, suggesting further decline for the asset. SHIB’s support levels are $0.0000085 and $0.0000102, with resistance levels at $0.0000115 and $0.0000112.
SHIB is close to the $0.0000102 support level. If the level does not hold, expect further price decline from the asset in the coming days.
At press time, Shiba Inu is trading at $0.00001061, and the price is rising after declining by 3.6%.
Featured image from Pixabay and chart from Tradingview
