As an experienced analyst, I’ve seen my fair share of market corrections and volatility, especially in the meme coin sector like Shiba Inu. The recent bearish trend that started in late June was a stark reminder of the unpredictable nature of this asset class.
As a crypto investor, I’ve noticed that the final week of June started off bearishly for me as well. Bitcoin dipped below $62k, resulting in an intraday loss of 3.3%. This bearish sentiment soon spread throughout the altcoin market and affected meme coins particularly due to their volatile nature. SHIB, being the second largest meme cryptocurrency by market cap, suffered a 4.68% drop today and is showing signs of potentially breaking down from its multi-month support. The question is, will this correction trend continue?
Shiba Inu Analysis: SHIB Faces Bearish Pressure as Whale Dumps 1.08T Tokens
During the June sell-off in the cryptocurrency market, Shiba Inu experienced a significant drop in price. The downward trend started when the coin was priced at around $0.00003. The bearish shift caused the value of the coin to plummet by 42%, resulting in a new price of $0.0000168. Meanwhile, the market capitalization for Shiba Inu fell to $9.945 billion.
As a crypto investor observing the market trends, I’ve noticed that the recent downturn could be part of a flag pattern formation on the daily chart. This flag pattern typically forms under bearish conditions and consists of two trendlines, which converge to form a symmetrical triangle. The price oscillates between these two lines, providing buyers with ample opportunity to regain bullish momentum before the next leg up.
With rising selling forces at play, the SHIB price is flirting with a bearish drop below its support trendline.
A significant transfer of Shiba Inu (SHIB), totaling 1.08 trillion tokens, worth roughly $18.4 million, was made by a large investor to Binance as revealed by the data monitoring platform Lookonchain. This transaction brought about a profitable gain of approximately $8.3 million for this astute investor.
A whale deposited all 1.08T $SHIB($18.4M) to #Binance 1 hour ago, making a profit of ~$8.3M!
This whale withdrew 1.08T $SHIB(cost ~$10.07M) from #Binance on Nov 24, Dec 4, and Dec 22, 2023.
He has an unrealized profit of $29M at the peak of $SHIB!
— Lookonchain (@lookonchain) June 24, 2024
As a crypto investor, if a whale decides to sell their SHIB holdings, this action could put extra pressure on the token to fall below its current support trendline. If SHIB fails to close the daily candle successfully above this level, it may intensify the bearish trend and potentially push the price down towards $0.00001195.
As a crypto investor, if the price of Shiba Inu coin surpasses and maintains its position above the lower trendline, the flag pattern will persistently shape my expectations for its price movement.
If the unsuccessful effort to push down the price fails, buyers are expected to boost the price back up by approximately 30%. They will then challenge the resistance trendline at $0.000022 once again. A breakout from the flag pattern’s range is essential for SHIB to resume its bullish momentum.
Technical Indicator:
- EMAs: The 50-week EMA slope, hovering near the $0.00001693 level, will offer buyers additional support to push the coin price higher.
- RSI: The daily Relative Strength Index slope dived to the oversold region of 25% could attack dip buyers in the market.
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2024-06-24 17:58