Shiba Inu whales accumulate SHIB, 25% upswing likely
- Shiba Inu price has breached a two-month consolidation, indicating its readiness to move.
- Investors can expect SHIB to rally 25% and tag the $0.0000315 resistance level.
- Invalidation of the bullish thesis will occur on the daily candlestick close below the $0.0000210 support level.
Shiba Inu (SHIB) price continues its struggle above a key hurdle. This development comes as SHIB, an ERC-20 meme coin, reacts to the Ethereum spot ETF approval news. The uptrend is likely to pick up as the ETF approval deadline nears. Investors looking to accumulate SHIB have a good opportunity to do so before the meme coin shoots up.
Also read: Week Ahead: Ethereum and DeFi to come under spotlight this week
Shiba Inu price poised to move higher
Since setting up a local top at $0.0000457 on March 5, the Shiba Inu price has produced lower lows and lower highs. Drawing a trend line connecting these swing points shows a declining trend line, which was breached on May 20. This daily candlestick close above the declining trend line and above the horizontal support level of $0.0000253 is a sign of an uptick in buyer pressure.
Going forward, investors can expect SHIB to form a base above $0.0000253 and kickstart a 25% recovery rally to the $0.0000315 resistance level. In a highly bullish scenario, investors can expect the dog-based meme coin to retest $0.0000355, the midpoint of the $0.0000253 to $0.0000457 range.
The Relative Strength Index (RSI) has flipped the 50 mean level into a support floor, showcasing the spike in bullish momentum. The same can be seen with the Awesome Oscillator (AO), which has recovered above the zero mean level.
With a clear rise in bullish momentum and SHIB clearing key technical levels, a breakout rally is just around the corner.
SHIB/USDT 4-hour chart
The consolidation seen in the past two months was a good accumulation zone, which can be confirmed by Santiment’s Whale Transaction Count indicator. This index tracks transactions that are $100,000 or higher and can be used as a proxy for institutional investors’ activity.
If a spike in this on-chain metric is noted after a crash or during a consolidation, it most likely means that these investors are accumulating. On the contrary, if this index spikes after a rally, it suggests that these investors could be looking to sell their holdings.
Between April 12 and May 21, the Whale Transaction Count index showed consistent spikes during the dips, showing that institutional investors were accumulating. This development adds credence to the bullish thesis explained from a technical perspective.
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SHIB Whale Transaction Count
Furthermore, a quick look at IntoTheBlock’s signals shows that the overall outlook for SHIB is bullish. Net network growth, larger transactions and other metrics are forecasting an optimistic outlook for Shiba Inu.
SHIB Signals
Although the outlook for Shiba Inu price is bullish, investors need to be cautious of a sudden downturn in the crypto market sentiment. In case of a spike in selling pressure that pushes SHIB to produce a daily candlestick close below $0.0000210, it would create a lower low and invalidate the bullish thesis.
Such a development could see SHIB crash 20% to the next key support level at $0.0000168.
Read more: Top 3 meme coins Dogecoin, Shiba Inu, Bonk: DOGE accumulation, SHIB update, BONK listing fuel gains
Cryptocurrency prices FAQs
Token launches like Arbitrum’s ARB airdrop and Optimism OP influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.
A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.
Macroeconomic events like the US Federal Reserve’s decision on interest rates influence risk assets like Bitcoin, mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.
Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs. This has been observed in Bitcoin and Litecoin.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
