 ▲ Shiba Inu (SHIB) |
Shiba Inu (SHIB) faced a crisis as a massive 126 billion tokens flowed into exchanges amid price weakness, but strong buying pressure quickly absorbed the supply, establishing a solid support level.
According to a report by crypto-focused media outlet The Crypto Basic on March 2 (local time), Shiba Inu experienced significant selling pressure over the weekend in line with broader market declines. Data from CryptoQuant showed that SHIB holdings on exchanges surged from 80.93 trillion on February 27 to 81.06 trillion on February 28. An increase in exchange reserves is typically interpreted as a sign of rising sell-side supply and a precursor to price declines, but this time whale investors moved swiftly.
As SHIB’s price approached the key support level of $0.0000050, whale investors began aggressive accumulation. Starting Sunday, large amounts of tokens were withdrawn from exchanges, reducing exchange reserves back to 80.90 trillion and currently down further to 80.87 trillion. Buying pressure effectively overwhelmed selling pressure, demonstrating the resilience of dip-buying demand.
This performance is particularly noteworthy as it occurred while the broader crypto market turned bearish due to military conflict in the Middle East. Following news of clashes between Iran and Israel, SHIB fell to as low as $0.0000054, experiencing a correction of more than 4% at one point on Sunday. However, it successfully defended the $0.0000050 support level previously confirmed during the market sell-off on February 6, laying the groundwork for a potential rebound.
As of Monday morning in Asian trading, SHIB is showing signs of recovery with a rebound of about 1%. Although key technical indicators, including trading volume, remain under the influence of a downtrend and the token continues to trade below major moving averages, aggressive whale accumulation supports confidence in long-term price appreciation. Market analysts suggest that if SHIB maintains its current support level, the possibility remains open for a rally of more than threefold, with $0.00001678 as the first target.
Despite significant geopolitical risks weighing on the crypto market, investors are closely watching SHIB’s downside resilience. While technical indicators point to weakness, on-chain data showing continued buying inflows suggests that Shiba Inu could demonstrate standout recovery among altcoins once market sentiment reverses. Investors are monitoring whether the $0.0000050 support level holds as they assess the market’s next move.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. The publisher is not responsible for any investment losses incurred based on this content.