Shiba Inu Whale Activity Spikes 7,140%, 799B SHIB Transferred Amid $0.00002 Price Test

• On December 23, investors procured 1.21 trillion SHIB tokens worth $26.6 million and sold 413 billion tokens valued at $9.1 million.

• Data revealed a steady decline in Shiba Inu’s exchange reserves since early December.

Shiba Inu (SHIB) has faced significant turbulence in December, dropping 16.59% this month and losing over 32% since December 9. Currently ranked 15th among the largest cryptocurrencies, SHIB recently retested critical support at $0.00002095 before rebounding to $0.00002233. Despite the market downturn, large SHIB holders have continued to accumulate, underscoring their confidence in the asset’s long-term prospects.

Major Whale Activity in December

On-chain data from IntoTheBlock highlights a surge in activity among large SHIB holders, defined as wallets owning at least 0.1% of the circulating supply. These investors procured 1.21 trillion SHIB tokens worth $26.6 million on December 23, selling 413 billion tokens valued at $9.1 million. This resulted in a net inflow of 799.32 billion SHIB, marking an 11-day high and a 7,140% increase from the previous day’s net inflow.

This accumulation aligns with a broader trend observed throughout Q4 2024, where net inflows to these wallets have outpaced outflows by nearly five times. Notably, the highest single-day net inflow during this period occurred on November 12, when whales added 3.47 trillion SHIB to their holdings. Such moves indicate strong buy-side interest despite broader market weakness.

Declining Exchange Reserves Signal Accumulation

Data from CryptoQuant corroborates the whale activity, revealing a steady decline in Shiba Inu’s exchange reserves since early December. As of December 7, exchange reserves stood at 140.87 trillion SHIB but have dropped to 135.74 trillion. This decrease suggests that investors are moving their holdings off exchanges, typically a bullish signal as it indicates reduced selling pressure.

Technical Outlook and Key Levels

Shiba Inu’s price action remains critical as the asset looks to defend its breakout above a months-long symmetrical triangle pattern. The token breached the triangle in early November but now appears to be retesting the breakout zone. Bulls need to maintain the Fib. 38.2% support level at $0.00001942 to prevent further declines and sustain the recovery effort.

Currently trading at $0.00002233, SHIB has gained 3.81% this week, demonstrating resilience amid market instability. A successful defense of the breakout could position Shiba Inu for a potential rebound in the coming weeks.