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

Fri, 11/25/2022 - 15:40
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Tomiwabold Olajide
To move forward, SHIB must confirm $0.000010 as support once more
SHIB Reacts to Whales' Buying, Will Price Burn Extra Zero?
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According to recent WhaleStats data, SHIB ranked among the top 10 purchased tokens for the 500 biggest ETH whales. Notably, large transactions were up 26% on the network. The SHIB price reacted to this by printing two giant hourly candles in the early hours of Friday.

SHIB's price surged nearly 8% to touch highs of $0.00000948 within the space of two hours before a retreat. At the time of publication, SHIB was changing hands at $0.0000917, up 2% in the last 24 hours after erasing slight intraday gains.

SHIB/USD Hourly Chart, Courtesy: TradingView

On the upside, a breach above the $0.000010 mark would be needed for SHIB to burn a zero in its price. Following the bearish market conditions seen in November as a result of the FTX implosion and its subsequent contagion, SHIB dipped from highs of $0.000013 at November's start to reach lows of $0.0000081 on Nov. 22.

The steady declines caused SHIB to lose the $0.000010 psychological level, which led to an extra zero in its pricing.

SHIB might have found its bottom

It seems that SHIB might have found its bottom in the meantime at the $0.000081 low as it rebounded after touching this key level.

To move forward, SHIB must confirm $0.000010 as the support once more. SHIB's price action has stalled below this key level in the past week, indicating that a short-term barrier might be gradually building.

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Other key levels for buyers to conquer in the meantime are $0.0000103, which is the daily MA 50, and $0.0000111, which coincides with the MA 200.

A successful attempt past these key levels might result in the SHIB price testing late October's high of $0.00001518. The SHIB ecosystem has received a positive inflow of news in recent days; therefore, bulls have a shimmer of hope.

The daily RSI is also slightly tilting upward while contemplating a likely move near the neutral mark of 50. On the other hand, the general market recovery should be closely watched, as SHIB mirrors the Bitcoin price with a 95% correlation.

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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.