An individual known as SHIB Whale on X has identified a support zone for Shiba Inu at around $0.000016, which could potentially lead to a recovery back to $0.000024.
This analysis comes in response to the ongoing market correction that has resulted in significant declines in the price of Bitcoin (BTC) and altcoins. Shiba Inu, known for its high volatility, has experienced even larger drops, with a current decrease of 33.11% this month.
Since reaching a peak of $0.00002945 on May 29, Shiba Inu has been on a continuous downward trend, consistently recording lower lows and lower highs on a daily basis. As a result, a descending channel has formed on the daily chart, with a resistance level set at $0.00002622 and a support level around $0.000016.
The descending channel indicates a bearish sentiment among investors, with consistent selling pressure causing prices to fall. However, occasional rallies have been observed that fail to break above the resistance level, which continues to drop to lower levels.
Using a 2-hour chart, SHIB Whale has determined that Shiba Inu is currently trading within a descending triangle amidst the ongoing price decline. This triangle formation began at the beginning of the month, and SHIB is now approaching the peak of the structure.
Interestingly, data from SHIB Whale’s chart reveals that the lower trendline of this descending triangle forms a strong support level that could help Shiba Inu defend against further declines. This support rests at the price level of $0.00001670 and is backed by 58,560 addresses that collectively hold 93.98 trillion SHIB at an average price of $0.000016.
The analyst predicts that Shiba Inu may experience a further drop to this level, but expects the support to hold. It is worth noting that Shiba Inu has already reached the established support level and is currently trading at $0.00001665.
The immediate support at this region is at $0.00001633, which represents Shiba Inu’s last line of defense. If this level holds, SHIB Whale anticipates that Shiba Inu will utilize the support as a launching point to reclaim the $0.000024 price level.
As prices stabilize, there has been a decrease in large transactions and whale activity for SHIB. The volume of whale transactions worth at least $100,000 has decreased to 747 billion SHIB on June 22, reaching a weekly low, and rose to 1.11 trillion tokens yesterday, still below the weekly average.
Additionally, the volume of transactions involving bulls and bears (addresses trading 1% of the 24-hour volume) has also decreased. Bulls purchased only 1.18 trillion SHIB on June 23, while bears sold 1.14 trillion tokens on the same day. With this volume, there was an excess demand of 48.13 billion SHIB in the market.
The reduction in large transactions and stabilizing prices suggests that large holders (whales) are holding onto their assets rather than trading them, indicating a possible consolidation phase. This indicates that the market may have found a support level where significant selling pressure is diminishing, and investors are awaiting potential catalysts before making significant moves. The observed excess demand on June 21 further strengthens the possibility of a rebound.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. The views expressed in this article are the personal opinions of the author and do not reflect the opinion of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
