Shiba Inu (SHIB) has recently demonstrated notable resilience, with its price increasing by approximately 7% in a 24-hour period. This uptick is attributed to significant whale activity and a technical breakout from a falling wedge pattern, indicating potential bullish momentum.

On May 7, 2025, SHIB's large holder inflows surged by 2,952%, escalating from 238.91 billion SHIB to over 6.42 trillion SHIB. This surge in whale activity often precedes substantial price movements, suggesting that institutional investors are positioning themselves ahead of a potential rally.

Technically, SHIB has broken out of a falling wedge pattern, a bullish reversal setup. The Relative Strength Index (RSI) is approaching overbought territory, and the Moving Average Convergence Divergence (MACD) indicator has turned bullish, further supporting the case for upward price movement.

However, despite these positive developments, approximately 65% of SHIB holders are currently at a loss, with the token's price remaining 87% below its all-time high reached in 2021 . This substantial underwater position among holders may introduce selling pressure if the price approaches key resistance levels.

While SHIB is exhibiting signs of bullish momentum driven by whale accumulation and technical indicators, the significant number of underwater holders and existing resistance levels suggest that caution is warranted. Investors should monitor these developments closely to assess the sustainability of the current price movement.