Shiba Inu [SHIB] has been facing a challenging time in the memecoin sector, mirroring the struggles of Bitcoin [BTC] to surpass the $100k mark. The market volatility has not been favorable for SHIB bulls in recent times. However, amidst the prevailing negative sentiment, a significant event occurred that buoyed bullish spirits – a whale moved a substantial amount of 8.18 trillion SHIB tokens out of Crypto.com exchange, valued at approximately $195.1 million.
The movement of such a massive number of tokens by a single entity raised eyebrows and hinted at a possible accumulation strategy by the whale. This action could potentially signal a positive trend for SHIB’s price in the near future.
Analyzing the charts, it is evident that Shiba Inu has been on a slow path to recovery following a deep correction in mid-2024. The $0.00002 zone, previously a resistance level, has now turned into a support zone, offering a glimmer of hope for SHIB bulls. However, the daily timeframe structure appears bearish post the December slump, with the price dipping below the 61.8% retracement level at $0.00002325. Subsequent attempts to break out have been met with resistance, leading to the formation of a short-term range.
On the 4-hour chart, a clearer picture emerges with the formation of a short-term range. The price briefly dipped below the range lows at $0.000021, coinciding with a drop in BTC to $89.2k. However, SHIB quickly recovered from this deviation, signaling a high probability buy signal. This rapid recovery suggests a potential bullish move towards the range highs at $0.0000246 in the coming week.
Despite the optimistic outlook, traders are advised to exercise caution as capital flows are slightly negative according to the CMF indicator. Without sufficient buying pressure, SHIB may struggle to overcome the mid-range resistance at $0.0000228. Setting a stop-loss below the local lows or at $0.0000202 could mitigate potential downside risks, with the lower timeframe fair value gap at $0.0000208 acting as a support level.
In conclusion, while the whale accumulation and the subsequent price action may hint at a bullish trend for SHIB, traders should remain vigilant and closely monitor key support and resistance levels to make informed trading decisions. As always, the information provided is the writer’s opinion and should not be construed as financial advice.
Next: VIRTUAL whales buy the dip – Analyzing impact on price action.