Shiba Inu price has been in a bearish consolidation phase in recent days. However, the meme coin made a 180 turnaround. Thus, the altcoin price rose above critical resistance thresholds to escape the hands of the bears. This remarkable rise has been accelerated by a sharp increase in whale activity. According to crypto analyst Shayan Chowdhury, this indicates SHIB’s potential for a prolonged rally.
Whales excited by altcoin price rise
As you follow from Kriptokoin.com, whales with significant influence significantly affect the prices of meme coins such as SHIB. The tremendous moves of these players have the capacity to create more volatility. Therefore, it is possible for them to drive altcoin prices towards bottoms or tops.
According to data from IntoTheBlock, there has been a significant increase in whale transactions in the last 48 hours. While this metric experienced an increase on September 20, it accelerated further on September 21, reaching a total whale transaction value of over $47 million. Whale Alert, known for sharing major crypto transaction details, recently detected a large SHIB transfer from Amsterdam-based Bitvavo exchange. This internal transaction involved SHIB 4.5 trillion worth approximately $33.4 million as Bitvavo redistributed the Shiba Inu supply into its own wallets.
Shorts exploded: Bull traders regained their confidence!
Additionally, according to Coinglass, the altcoin price moved in the opposite direction of sellers’ expectations. That’s why there was a significant increase in short liquidation. Data shows that a total of $110,000 worth of short positions were liquidated today. It also indicates that bullish traders have increased their confidence.
However, amid these developments, a worrying benchmark raises potential hurdles for SHIB’s price. Despite the recent increase in SHIB’s value, the volatility rate has shown no signs of increasing. This metric remained steady at approximately 33.5%. This suggests that it may not trigger additional price fluctuations. Therefore, this stability is likely to provide an advantage to sellers, especially at resistance levels.
What’s next for the altcoin price?
Buyers successfully pushed the price above the $0.0000073 bearish channel formation. Additionally, SHIB price crossed the EMA100 trend line. Thus, SHIB witnessed strong buying activity in the last few hours. However, the sellers are advocating another rise by forming a strong resistance near EMA200. At the time of writing, the altcoin price is trading at $0.0000076, increasing by over 5% daily.
However, the bears are struggling to establish their dominance in pushing the price below the solid support level of $0.000007. This shows that the bulls remain active. It also means they are willing to buy during price declines. As a result, it is possible that SHIB price will trade below EMA200 for a while longer.
However, a minor downside correction is possible as the RSI level has moved above the overbought zone. If the bulls manage to send the altcoin price above the EMA200, this will signal the beginning of a sustained recovery targeting the critical $0.0000084 and potentially $0.0000088 level. Conversely, if it breaks the $0.000007 level, SHIB price is likely to move towards $0.000006.
The predictions and opinions in the article belong to the analyst and are definitely not investment advice. We strongly recommend that you do your own research before investing.
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