Shiba Inu tests 50-MA despite whales accumulating billions of SHIB tokens

Shiba Inu (SHIB) price has favored the bulls for a week now, extending its gains for the second consecutive session. This comes as sentiment across the crypto market continues to improve, initiated by the crypto king, Bitcoin (BTC).

Also Read: New SHIB investors bring deposits to the network but fail to trigger a rise in Shiba Inu price

Shiba Inu whales acquire a whopping 100 billion SHIB tokens in a few days

Shiba Inu (SHIB) whales have acquired nearly 100 billion SHIB tokens, with data from IntoTheBlock showing that the wallet addresses of major SHIB holders did so in less than five days. However, around 60% of these tokens are held in dead wallet addresses, meaning the coins are slated for token burning. Based on the latest data from Shibburn, almost 4 billion SHIB tokens have been burned in the last 24 hours.

Notably, the whales mentioned above make for about 41 addresses and hold between 0.1% and 1% supply of the total SHIB tokens. While a layman may associate this news with the latest 5% move in Shiba Inu price, the keen eye will know that it could not have been the market mover. This is because most of the whales represent exchange accounts, meaning various investors or holders could be selling their SHIB tokens to the exchange. This would cause an accumulation of the tokens in whale addresses. On the other hand, it could also be interpreted as SHIB investors having a negative perspective of the coin and therefore sending them to cryptocurrency exchanges. 

SHIB must flip the 50-MA or else…

The outlook of the four-hour chart for the SHIB/USDT trading pair shows that the meme-coin has been following a descending channel since April 18. The upper band of descending channel is acting as resistance right now, with the 0.00000874 level being crucial resistance as it was the previous day's high.

Currently, the Shiba Inu price is testing its immediate resistance at $0.00000861, the same level where the 50-period Moving Average stands. Failure to break above this level or flip it into support could see SHIB extend the downfall towards the first level of support at 0.00000831, just above the channel's midline. From here, the ensuing selling pressure could lead the prices toward the June 1 low level of around $0.00000831

In a dire case, Shiba Inu price could drop toward the lower trendline of descending channel, ending at around $0.00000759.

Meanwhile, the Relative Strength Index (RSI) faces downwards, indicating a declining momentum. Any four-hour candle closing below the 50-moving average line will increase the downward momentum.

SHIB/USDT 4-hour chart

Conversely, Shiba Inu price breaking above the 50-MA could pave the way for more gains, starting with an escape from the downtrend. However, investors can only breathe after a decisive 4-hour close above the $0.00000906 level.