The price of SHIB, also called the “Dogecoin killer”, has been in a bearish consolidation phase in recent days. However, a reversal occurred when the meme coin performed a 180 reversal, breaking above critical resistance thresholds to break free from its bearish grip. This notable increase was accelerated by a sharp increase in whale activity, signaling the potential for a longer SHIB rally.
Whales get excited after the wave of SHIB
Meme coins like SHIB have seen their prices significantly affected by influential whale players who wield significant influence. Their massive moves have the ability to create more volatility, ultimately sending prices to lows or promising highs.
According to data from IntoTheBlock, there has been a notable increase in whale transactions over the past 48 hours. Although this metric saw an increase on the 20th, it accelerated even further on September 21st, reaching a total whale transaction value of more than $47 million.
Whale Alert, known for sharing large crypto transaction data, recently spotted a huge transfer of SHIB from Amsterdam-based exchange Bitvavo. This internal transaction involved 4.5 trillion SHIB, worth approximately $33.4 million, as Bitvavo reallocated its Shiba Inu stock within its own wallet.
According to Coinglass, there has been a significant increase in short liquidation as the SHIB price moved in the opposite direction to seller expectations. Data shows that short positions totaling $110,000 were liquidated today, boosting confidence among bullish traders.
Still, amid these developments, a troubling metric poses potential hurdles for SHIB’s price. Despite the recent rise in SHIB’s value, volatility shows no signs of increasing. This has remained stable at around 33.5%, indicating that this may not trigger additional price fluctuations. This stability could give sellers an advantage, especially around resistance levels.
What’s next for the SHIB Prize?
SHIB’s price witnessed robust buying activity in the past few hours as buyers successfully broke above the bearish channel pattern at $0.0000073, moving past the EMA100 trendline. However, sellers are defending a new wave by creating strong resistance near EMA200. At the time of writing, SHIB price is trading at $0.0000076, up over 5% from yesterday’s price.
Nevertheless, the bears are struggling to establish their dominance by pulling the price below the robust support level at $0.000007. This means that the bulls remain active and are willing to buy during price declines. Consequently, we can expect the SHIB price to remain below the EMA200 for some time to come.
However, a small downward correction is expected as the RSI level rises above the overbought area.
If the bulls manage to send the price above the EMA200, it would signal the start of a sustainable recovery aimed at the crucial USD 0.0000084 level and possibly USD 0.0000088. Conversely, a break from the $0.000007 level could expose the price to a potential decline towards $0.000006.
