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SHIB Price Prepares Major Move, Here Are Potential Reasons

Tue, 11/29/2022 - 12:45
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Tomiwabold Olajide
SHIB price might have to respond to increasing demand
SHIB Price Prepares Major Move, Here Are Potential Reasons
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Shiba Inu might be preparing for another major price move if history plays out well. When rival cryptocurrency Dogecoin surged following Elon Musk's Twitter acquisition in late October, blockchain analytics firm Santiment deduced that SHIB historically followed Dogecoin pumps.

Santiment wrote, "Whatever side of the fence you are on with meme coins like DOGE and SHIB, there is no denying that they have had their pump moments. Shiba Inu has historically followed Dogecoin pumps."

True to form, after Dogecoin slightly cooled off, Shiba Inu embarked on a run alongside it, reaching highs of $0.0000151 on Oct. 29. Also, SHIB subsequently gained strength on its Dogecoin pairing.

Currently, Dogecoin is rallying 10% in the last 24 hours and 40% in the past week. If history repeats itself, SHIB could see a major price move as soon as Dogecoin cools down. At the time of publication, SHIB was trading up 2.37% at $0.00000922, while it is up 11.17% on the weekly timeframe.

In addition, the SHIB price remains in a consolidation phase, which usually foreshadows its main price moves. Since Nov. 16, the SHIB price has remained in a range with its barrier and support at $0.0000965 and $0.00000817, respectively.

The daily RSI is tilting slightly upward, suggesting an imminent move; however, because this indicator remains below the neutral level of 50, the general picture remains one of consolidation or range trading.

Whales are accumulating

Data from the crypto data tracker WhaleStats indicates a slight 0.2% increase in the SHIB balance of the top 100 Shiba Inu holders.

SHIB Reacts to Whales' Buying, Will Price Burn Extra Zero?

Given that these top holders own SHIB assets running into the billions of tokens, the slight 0.2% increase might be worthwhile.

If this trend of accumulation is sustained, the SHIB price might have to respond to increasing demand. Despite all of the reasons stated above, it might be more necessary to pay close attention to market trends.

SHIB mirrors the price of Bitcoin, as it presently has a 97% correlation with the leading cryptocurrency.

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.