Shiba Inu (SHIB), the popular meme coin, has been a center of attention lately. Despite a recent dip of 8%, analysts are closely monitoring SHIB’s price action as it might be nearing the end of an accumulation phase.
Accumulation Winding Down: Potential Bull Run Incoming?
Market analyst Crypto Sheriff suggests SHIB could be wrapping up its accumulation phase. This period is characterized by lower volatility as investors consolidate their holdings. Historically, such consolidation can precede bullish trends fueled by increased buying pressure.
Sheriff’s analysis points towards a potential price recovery for SHIB, with a target reaching its yearly high above $0.000045. This prediction hinges on two key factors: the Relative Strength Index (RSI) and SHIB’s price chart.
Oversold RSI: Signalling a Price Reversal?
The RSI is a technical indicator used to measure if an asset is overbought or oversold. Currently, SHIB’s RSI sits at 26, placing it in the neutral zone but trending towards oversold territory. An oversold RSI suggests selling pressure might be nearing exhaustion, potentially leading to a price reversal.
Whale Activity and Market Movements: A Cause for Optimism?
While the overall sentiment leans towards selling, indicated by the Accumulation/Distribution (A/D) value of -800.421T, recent whale activity has sparked cautious optimism. According to Lookonchain, a new whale wallet significantly accumulated SHIB tokens (over 583.7 billion) from Binance.
This whale activity coincides with a substantial price drop for SHIB, which has fallen over 40% since its May 29th peak of $0.00002945. However, some investors view this decline as a buying opportunity. The recent whale purchase highlights this perspective, as acquiring the same amount of SHIB is now considerably cheaper compared to its May high.
Also Read: Shiba Inu Community On High Alert: 72% Rise In Scams Misusing SHIB Name
Shifting Tides: Bull Run or False Hope?
The combined analysis of technical indicators, whale activity, and market movements paints a complex picture for SHIB’s future. While the current selling pressure is undeniable, the nearing oversold RSI and significant whale accumulation suggest a potential shift in investor sentiment.
If buying pressure picks up, SHIB might be on track for a price increase, potentially reaching the analyst’s predicted target. However, the inherent volatility of the cryptocurrency market means unforeseen factors can influence price movements. Investors should exercise caution and conduct thorough research before making any investment decisions.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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