As we delve into the world of cryptocurrency, a crucial development is the current situation of Shiba Inu’s rate. This meme-based digital currency has recently witnessed a price drop to $0,000021. However, technical indicators like the Bollinger Bands and the 200 Exponential Moving Average (EMA) suggest a possible rally. Simultaneously, on-chain data indicates an increased activity from large-scale investors (“whales”). With the trading volume having jumped by 80%, the interest in SHIB is palpable. Now the question arises – can this memecoin touch the magical threshold of 1 Euro?
Shiba Inu’s Current Scenario
Having experienced a price drop, the Shiba Inu cryptocurrency is currently trading at $0,000021. According to the Bollinger Bands, SHIB is nearing the ‘oversold’ bracket, which traders should pay heed to. Bollinger Bands consists of three distinct lines – the upper, middle and lower bands. The middle band is based on the 20-day Moving Average of an asset, while the higher and lower bands are two standard deviations from this average. As it stands, SHIB is now approaching the lower band, which is 3.58% lower than its current rate.
If an asset is nearing the lower band, it could signal an ‘oversold’ market. In the case of SHIB, it could point towards an extremely rapid price drop. This could be a cautionary sign, indicating a negative market sentiment. However, being ‘oversold’ could also mark a turning point. If buyers start to engage, it could signify a market recovery. Assuming that SHIB finds support at this level and demand picks up, the next crucial resistance point is $0,0000223, which marks the 20-day average price. If SHIB can break above this median band, the next target lies at the upper band at $0,0000246.
Role of Whales in Shiba Inu’s Performance
Although the current sentiment feels a bit bearish, the oversold zone could offer opportunities for a turnaround. Notably, whales seem to be stepping into action. For anyone interested in keeping track of OKB’s future potential, they can download a renowned cryptocurrency app such as Finances Zippy to gain insightful price predictions and market trends.
On January 3, 2024, SHIB broke out from a bullish double-bottom cost pattern and then entered a consolidation phase. This consolidation lasted nearly three days, during which a potential whale relocated a whopping 8.18 trillion SHIB coins, worth $195.1 million, from Crypto.com exchanges to a wallet. This transfer commenced while the broader market adhered to an upward trend and stayed relatively stable.
Later, with the onset of the American market, the Institute for Supply Management (ISM) published a report that nudged the market into a bearish trend. Amid this downturn, SHIB broke out of the three-day consolidation period and depreciated by more than 14.5%. During this price correction, it appears that retailers are offloading their holdings, while long-term holders are accumulating.
FAQ: How does the performance of digital assets like Shiba Inu get affected by “whales”?
Large-scale investors, colloquially known as whales, can significantly impact a cryptocurrency’s performance. Their actions, including buying, selling, or transferring large amounts of a particular digital coin, can influence the coin’s price and market trends.
Involvement of Long-Term Holders
Data from on-chain analytics firm IntoTheBlock reveals a massive hike of 2004% in the volume of large transactions in the past 24 hours. This surge indicates strong participation from whales, investors, and long-term holders.
In the same duration, another analytics firm, Coinglass, disclosed an outflow of $7.04 million in SHIB tokens from exchanges. These data suggest that there’s a possible accumulation of the memecoin, triggered by a price drop exceeding 10% – an event that attracted investors and long-term holders.
Recovering Shiba Inu
The recent price drop has brought Shiba Inu (SHIB) to a crucial horizontal support level, in line with the 200 Exponential Moving Average (EMA) on a daily timeframe. This positioning portrays SHIB as optimistic for a potential upward movement.
Basing on recent price actions, there’s a viable chance that SHIB can surge by 80% to the level of $0,00003939, provided it continues to hover above the 200 EMA. This movement, however, calls for patience and time. Simultaneously, the trading volume has also soared by 80%, which indicates increased participation from traders and investors compared to the previous day.
FAQ: What does it mean when a cryptocurrency is ‘oversold’?
When a cryptocurrency is said to be ‘oversold’, it means that it has been sold extensively and its price has possibly declined too quickly. This situation could potentially represent a buying opportunity, because the market may recover as sellers get exhausted and buyers start to step in.
Following this detailed exploration of Shiba Inu’s market situation, it is worth noting that the crypto market’s ups and downs make it an exciting, yet challenging, field. The involvement of whales, long-term holders, and other market trends can greatly influence the performance of digital currencies like Shiba Inu. Understanding these nuances can help investors make informed decisions, driving the path of financial success.
