SHIB whales accumulate despite Shiba Inu price falling to four-month low; what it means for the meme coin

Shiba Inu price continued its lackluster streak of red candlesticks followed by minimal recovery as the altcoin witnessed virtually no change on May 2. While the on-chain conditions of the meme coin scream bearish at the moment, SHIB whales' actions suggest the contrary.

Shiba Inu price poised for recovery

Shiba Inu price is currently down by more than 13.2% as the meme coin slipped below the psychological support level of $0.00001000 on May 1. Trading at a four-month low, the last time this altcoin fell to this level was back in January this year. 

However, this week's decrease is not as notable as the previous few days, indicating a slowdown in the corrections. This deceleration is also apparent in the Moving Average Convergence Divergence (MACD).

The momentum indicator, despite still experiencing a bearish crossover, is observing receding red bars on the histogram. The gap between the MACD line (blue) and the signal line (red) is also closing, and the former could eventually cross over the latter to mark a bullish crossover.

SHIB/USD 1-day chart

For this to occur, Shiba Inu price would need some support from the broader market cues in addition to the support it is receiving from its whales. Various large wallet holders that have been accumulating since November 2022 have been unaffected by the volatility of 2023.

Wallets holding 1 million to 10 million SHIB were the only entities to note selling towards the end of March when they dumped 500 billion SHIB worth $5 million but returned to accumulation soon after.

Cohorts with a balance of 10 million to 100 million SHIB and 100 million to 1 billion SHIB have also stuck to their accumulation mission regardless of the recent 13% crash.

Shiba Inu whale activity

These investors remaining bullish is crucial for the meme coin since about 67% of the entire SHIB supply is concentrated among the whales. This provides Shiba Inu price both optimism as well as a threat.

Optimism because their bullishness translates to minimal declines and quicker recovery. Threat because any amount of dumping from these wallets could negatively impact the price.

Shiba Inu whale concentration

An instance of this can be found in the fact that more than 263 trillion SHIB worth $2.63 billion is currently awaiting recovery to $0.00001200. Shiba Inu price crossing this level would turn this supply profitable, translating gains for the holders.

Shiba Inu supply awaiting recovery

Now if the whales continue to remain bullish, this recovery is possible as they would keep buying out the supply, sustaining demand. But when more positions become profitable, these cohorts could sell for profit as well, which could result in a potential decline.

If and at all should this happen, investors would end up becoming cautious of the whales and their movement, but until then, these cohorts are seemingly Shiba Inu's savior.