Shiba Inu (SHIB) has mirrored the broader crypto market’s struggles in June, experiencing a significant downward trend. This has analysts scrambling to identify potential support levels and predict future price movements for the popular meme coin.
A recent analysis by SHIB Whale, a crypto analyst on platform X, highlights a descending channel on SHIB’s daily chart. This pattern typically indicates continued selling pressure, pushing prices lower. The channel is formed by a resistance line at $0.00002622 and a support zone around $0.00001670.
While the downward trend suggests ongoing selling, SHIB Whale emphasizes the importance of the $0.00001670 support level. This could indicate potential buying pressure accumulating despite the bearish sentiment.
Nearing the Support Zone: A Potential Turning Point?
According to SHIB Whale’s analysis, the descending triangle began in early June. SHIB is currently nearing the apex of this triangle, with the crucial support level at $0.00001670 just below its current price of $0.00001677. This represents a 5.25% decline over the past 24 hours.
This support area holds significance because, based on IntoTheBlock data, it coincides with a zone where roughly 58,560 addresses collectively purchased a staggering 93.98 trillion SHIB at an average price of $0.000016. This concentrated buying activity suggests this level could act as a buffer against further price drops.
Short-Term Dip Before a Rebound?
The analyst predicts a potential short-term dip for SHIB, reaching the designated support level of $0.00001670. However, he believes this support will hold firm, preventing a steeper decline. Following this potential dip, SHIB Whale anticipates a rebound, with a projected price increase back to $0.000024.
Surpassing this $0.00002 resistance level could be a significant turning point, with some prominent analysts believing it could propel SHIB further to $0.0001.
Whale Activity Suggests Consolidation
Interestingly, alongside the price stabilization, there has been a decrease in large transactions and overall whale activity. Data from IntoTheBlock reveals a decline in whale transactions exceeding $100,000. This suggests these whales might be taking a wait-and-see approach rather than actively selling. Additionally, trading activity between high-volume buyers and sellers has also dipped. This could signal a potential consolidation phase as the market seeks equilibrium.
The Road Ahead for SHIB
The coming days will be crucial for SHIB. Will it find support and rebound, or will it break through the support level and experience a steeper decline? While the future remains uncertain, the analyst’s insights and on-chain data offer valuable clues for SHIB holders and those interested in the meme coin’s future trajectory.
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.
About The Author
