Shiba Inu (SHIB) has faced recent price pullbacks, but whale accumulation, a bullish technical breakout, and increased burn activity suggest that the meme coin is poised for a rebound. Whale inflows skyrocketed by 2,952% on May 7, signaling renewed investor confidence. The technical chart shows a falling wedge breakout, with a price target of $0.00002400. Despite waning retail interest, SHIB’s strong fundamentals point to a possible bullish trend ahead.
Despite recent price pullbacks, Shiba Inu (SHIB) is still on the radar of crypto whales and institutional traders. Retail participation may be fading, but long-term holders and large investors are intensifying their positions, speculating that SHIB is truly preparing for a new chapter.
With a bullish breakout on the charts, increasing burn activity, and the derivatives markets coming back to life, this meme coin may be able to go the distance.
The technical chart of Shiba Inu only adds to the bullish case. SHIB's price has broken out from a falling wedge pattern, which was forming since the end of 2024, with falling highs and sequential lower lows. The breakout confirms the potential for a reversal, and the increase in buy volume adds further strength validation.
Currently being traded at around $0.00001486, up 11.86% in the last 24 hours, SHIB has climbed above all the EMAs except the 200 EMA, all are bullishly aligned. The 200-EMA is at $0.00001612, which is the next immediate resistance, with price targets reaching $0.00001850, $0.00002110, and potentially $0.00002460 if momentum continues.
The RSI is presently at 66.72, sitting near but not yet at overbought territory, indicating strong upward momentum. During the consolidation phase, the RSI dipped to 40, thus allowing space for a breakout. This breakout trajectory was executed without the risk of the move being exhausted.
The largest shift in the SHIB landscape is whale activity. On May 7, 2025, Shiba Inu’s whale inflows skyrocketed 2,952%, jumping from 238.91 billion SHIB to 6.42 trillion SHIB in a day. And it wasn’t just a bump in inflows; the Large Holder Netflow rose at the same time by over 6,050%, indicating large institutional-scale accounts were restructuring their position.
This behavior likely indicates large players are getting back into SHIB with conviction. Jane Smith, Market Strategist at Digital Assets Group, stated, “Whale activity like this is the usual precursor to moves on price, signalling that the major investors see current levels as a great investment opportunity.”
Historically, massive shifts in whale positioning like that have preceded a market rally and created optimism that SHIB was about to make a stronger move.
Alongside whale activity, the 24-hour burn rate for SHIB has increased by 4,833.89%. This reflects the community's commitment to reducing the circulating supply of SHIB. Burns are very important for meme coins like SHIB because they drive scarcity and can provide some upward pressure in terms of price over time.
Burns alone will not provide the price action that investors are looking for. Still, the combination of decreased supply and emerging institutional accumulation presents a solid foundational narrative, which will only strengthen if retail interest flares up.
Shiba Inu’s derivatives market is also showing some flair. As per CoinGlass, open interest jumped 20.57% to a total of $200.90 million, paired with an over 81% increase in trading volume as speculative interest in Shiba Inu increased.
Higher open interest indicates market participants have more capital locked into a long or short position, signalling risk sentiment. When open interest metrics are combined with a technical breakout and whale accumulation, they are a signal that the rest of the market is anticipating upward momentum.
Short positions are also being flushed out. Multiple liquidation events occurred as the price broke past key resistance levels in early May, giving bulls more control and potentially amplifying gains via a short squeeze.
SHIB's exchange reserves have decreased by 6.57%, and net outflows increased by over 1,558%, indicating that investors, especially whales, are moving tokens from exchanges to private wallets. This leads to less SHIB available for immediate sale, as investors usually plan to hold for longer periods.
When tokens leave exchanges, it typically indicates confidence and intention to hold during possible upside. This, combined with less liquidity on order books, can cause tighter supply and more aggressive price reactions to buying.
SHIB's correlation coefficient with Bitcoin remains high at 0.84, which suggests that SHIB price behavior tends to follow the broader crypto market and Bitcoin, especially. If Bitcoin momentum continues and the macro backdrop remains supportive, then it is logical to expect that Shiba Inu may benefit.
SHIB's ability to decouple from Bitcoin will relate to the development of its ecosystem and adoption of Shibarium, automated integrations of DeFi, and community-led innovations that facilitate sustainable independent growth.
Shiba Inu's chart may look dull at first glance, but it's a different story beneath the surface. Whale accumulation, bullish technical formations, increased burning activity, and rising derivatives volume are all reasons why SHIB may be about to break out.
While retail seems lacking, large players are positioning for something more profound. If SHIB can push through resistance at $0.00001600 with volume, we could see an advance into the $0.00002400 range. Until then, all eyes are on the whale's actions and what they seem privy to that the rest of the marketplace doesn't quite see yet.