Shiba Inu (SHIB), the popular meme coin, has been on a downward trend mirroring the broader crypto market correction. The token has shed over 33% in June alone, raising concerns among investors. However, a prominent analyst, SHIB Whale, sees a potential silver lining in the form of a key support zone.
Descending Channels and Triangle Point to Bearish Sentiment
SHIB’s price action has formed a descending channel on the daily charts, indicating bearish sentiment with consistent selling pressure. This pattern typically sees lower highs and lower lows, suggesting a potential for further decline. However, occasional rallies within the channel have been unable to breach the resistance line, highlighting the selling pressure.
Support at $0.000016 Could Launch a Rebound
Shifting to a 2-hour timeframe, SHIB Whale identifies a descending triangle forming around the current price point. Interestingly, the lower trendline of this triangle coincides with a robust support level at $0.00001670. Data from IntoTheBlock reveals that nearly 58,600 addresses purchased a staggering 93.98 trillion SHIB at this price point on average. This significant buying activity suggests this zone could act as a springboard for a potential rebound.
Analyst Predicts Reversal to $0.000024
SHIB Whale predicts a further drop towards the $0.000016 support level but anticipates it to hold firm. If this support holds, the analyst believes SHIB could leverage it to climb back to the $0.000024 price point. This would represent a significant recovery from current levels.
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Interestingly, SHIB is witnessing a decrease in large transactions and whale activity as prices attempt to stabilize. The volume of whale transactions exceeding $100,000 has dropped significantly compared to the weekly average. Additionally, trading activity from both bulls and bears has decreased, with a slight excess demand from buyers observed on June 23rd.
Consolidation Phase or Pre-Rebound Calm?
The declining whale activity alongside stabilizing prices could indicate a consolidation phase. Large holders might be holding onto their SHIB rather than selling, suggesting potential market confidence. This, coupled with the slight excess buyer demand, could be early signs of a future rebound.
While SHIB faces headwinds from the broader market correction, the identified support zone and decreasing selling pressure offer a glimmer of hope. Whether SHIB can capitalize on this support and climb back to $0.000024 remains to be seen. However, a close watch on price action and whale activity will be crucial in the coming days.
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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