- Meme token Shiba Inu might breakout out of a bullish technical setup.
- Meanwhile, a new SHIB whale bought 171 billion Shiba Inu coins, worth $8,365,841.
NEW DELHI (CoinChapter.com) — The memecoin Shiba Inu price is currently trying to settle above $0.00005 after falling below the level on Tuesday.
The meme token, which jumped 830.83% in Oct, has had a very disappointing Nov, down 27% currently. However, SHIB bulls seem to be using the opportunity to buy more Shiba Inu coins. A Shiba Inu whale recently bought 171,783,186,654 SHIB tokens, worth $8,365,841.
Bulls would be hoping for a bull run similar to Oct’s when a whale bought 6.3 trillion Shiba Inu coins. As a result, SHIB prices went in an uptrend, which placed the memecoin in the list of top-20 cryptocurrencies by market cap.
The sale occurred in two large transactions. In the first transaction, the whale bought $6,203,683 worth of SHIB. Then, nearly 11 hours after the execution of the first transaction, the whale added another $2,307,334 worth of Shiba Inu coins to its wallet.
Traditionally, investors consider whale purchases as a bullish signal, as they tend to hold their positions during corrections and only sell after the crypto’s price increases. Moreover, when a cryptocurrency attracts more whales, its volatility decreases as the share of retail traders declines.
Retail traders usually focus on short-term profits and are often responsible for sell-offs. The top 10 Shiba Inu wallets hold nearly 64.26% of the total active supply, with the biggest wallet holding a whopping 41.03% of the total SHIB available.
Moreover, SHIB prices are moving in a triangle pattern. SHIB bulls are hoping for a bullish breakout on the back of fundamentals coming from the whale buy and recent listing news.
Shiba Inu Price Charts
Shiba Inu prices have formed a triangle pattern on the 4-hour (4H) chart. The meme token is bearish across all time horizons, as it trades below its 50-4H and 200-4H moving average trendlines. However, recent fundamentals might result in SHIB beginning a bull run soon.
At present, SHIB has resistance at the $0.00005089 price level, near the meme token’s 26-4h Exponential MA trendline. Further resistance for Shiba Inu is at $0.00005212, near its 50-4H moving average trendline. If the whale buy results in an uptrend, SHIB would likely reach $0.00005389 before market corrections pull prices back.
On the other hand, if the downtrend continues, Shiba Inu would seek support at $0.00004652. Furthermore, if retail traders who bought Shiba Inu during its Oct rush start selling, SHIB would likely fall to $0.00004516. A sustained sell-off would bring the support at $0.00004318 into play.
Meanwhile, MACD for SHIB is bearish on the 4H chart and also on the daily charts. However, bars on the MACD histogram are slowly moving towards positive levels. As such, it seems the MACD line (difference between 12-4H and 26-4H EMA) is moving upwards towards its signal line (9-4H EMA of MACD).
Once the MACD line moves above the MACD signal line, it would indicate a momentum trend reversal for Shiba. Meanwhile, the relative strength index for SHIB is currently neutral, with a value of 39.87. However, the RSI trendline is moving down towards oversold regions.
An RSI below 30 indicates a trend reversal might be on the cards.
At the time of writing, SHIB was trading at $0.000048, down 0.08% on the day.