Shiba Inu Sees Resurgence as Whales Stir Supply Crunch With 22B in Accumulation

Shiba Inu (SHIB) has returned to positive momentum after a defined bear contraction ended following a whale’s interference.

Shiba Inu’s market value is up 0.86% to $0.000006985 as it looks to breach the resistance level at $0.000007. This mild growth coincides with a whale intervention featuring the accumulation of 22.3 billion tokens valued at $150,000 within ten minutes on Oct. 19.

Shiba Inu Responds to Whale Gesture

The accumulation, as spotted by Arkham Intelligence, came at a time when SHIB plunged into a severe correction. While not the only altcoin that recorded this correction, SHIB’s outlook spells a concern, considering its 4.84% drop over the past month.

The whale accumulation came as a vote of confidence, as Shiba Inu aimed to recover. A similar development also saw another whale amass a massive amount of SHIB on Oct. 6. This Oct. 6 accumulation is significantly larger, featuring 4.5 trillion SHIB worth $32 million.

While the whale movements appeared suspicious to some market watchers, Arkham Intelligence pointed out a bullish undertone. This is because most of the SHIB whales that became active recently focus on moving their holdings out of exchanges. 

Based on its volatility, Shiba Inu generally responds positively to attempts to deflate its circulating supply through whale accumulation or burning. Both actions remain optimized in the Shiba Inu ecosystem, spelling a good omen for the protocol.

The Shibarium Factor

Shiba Inu’s growth prospects are typically underscored by the current growth in the Total Value Locked (TVL) in Shibarium, its layer-2 scaling network. 

Per data from DeFiLlama, the TVL jumped from $567.39k on Oct. 18 to $668.73k at the time of writing, representing a 17.86% surge. Coupled with its whale action, the positive uptick in Shibarium can help solidify SHIB’s ongoing revival.