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June 18, 2024
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Shiba Inu Escapes Bearish Grip Following Spike In Whale Activity! Will SHIB Price Hold Momentum?

The post Shiba Inu Escapes Bearish Grip Following Spike In Whale Activity! Will SHIB Price Hold Momentum? appeared first on Coinpedia Fintech News

Dubbed the “Dogecoin killer,” SHIB’s price had been in a bearish consolidation phase in recent days. However, a reversal occurred as the meme coin executed a 180 turnaround, surging above critical resistance thresholds to break free from its bearish grip. This remarkable surge was accelerated by a sharp uptick in whale activity, hinting at the potential for an extended SHIB rally. 

Whales Become Excited Following SHIB’s Surge

Meme coins such as SHIB have seen their prices significantly swayed by influential whale players who wield substantial influence. Their massive moves possess the capacity to bring increased volatility, ultimately sending prices towards either lows or the potential for promising highs.

According to data from IntoTheBlock, there has been a noteworthy increase in whale transactions in the past 48 hours. While this metric experienced a surge on the 20th, it accelerated even further on September 21st, reaching a total whale transaction value of over $47 million.

Whale Alert, known for sharing large crypto transaction details, recently spotted a massive transfer of SHIB from the Amsterdam-based exchange Bitvavo. This internal transaction involved 4.5 trillion SHIB, worth approximately $33.4 million, as Bitvavo redistributed its Shiba Inu supply within its own wallets.

According to Coinglass, there has been a significant increase in short-liquidation as the SHIB price moved in the opposite direction of sellers’ expectations. Data indicates that short positions totalling $110,000 were liquidated today, boosting the confidence of bullish traders.

Nevertheless, amid these developments, a concerning metric raises potential hurdles for SHIB’s price. Despite the recent surge in SHIB’s value, the volatility rate has shown no signs of increasing. It has remained steady at approximately 33.5%, indicating that it may not trigger additional price swings. This stability could provide sellers with an advantage, particularly around resistance levels. 

What’s Next For SHIB Price?

SHIB’s price witnessed robust buying activity in the last few hours as buyers successfully broke above the bearish channel pattern at $0.0000073, surging past the EMA100 trend line. However, sellers are defending another surge by creating a strong resistance near EMA200. As of writing, SHIB price trades at $0.0000076, surging over 5% from yesterday’s rate. 

Nevertheless, the bears are struggling to establish their dominance in pulling the price below the robust support level at $0.000007. This implies that the bulls remain active and are willing to buy during price dips. Consequently, we can expect the SHIB price to trade below EMA200 for some more time.

However, a minor downward correction is expected as the RSI level surged above the overbought region. 

If the bulls manage to send the price above the EMA200, it would signify the beginning of a sustained recovery targeting the crucial level of $0.0000084 and potentially $0.0000088. Conversely, a breach of the $0.000007 level could expose the price to a potential decline towards $0.000006.

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