Key Insights
- Shiba Inu price is showing some bottoming signs on the weekly chart.
- The token has formed a bullish divergence pattern.
- Whales are accumulating SHIB, and balances on exchanges are falling.
The Shiba Inu price has had a challenging year, remaining in a bear market and shedding billions of dollars in value. It has dropped in the last four consecutive months and is hovering near its all-time low. However, SHIB has potential catalysts that will push it higher in the coming weeks.
Shiba Inu Price Technicals Suggest a Rebound is Nearing
The weekly timeframe chart shows that the Shiba Inu price has been in a downtrend in the past two years. It initially surged to a multi-year high of $0.00004580 in March last year and then retreated to $0.00991092.
The coin then rebounded to a high of $0.000033 in November last year and then pulled back. Now, the coin has found support at an important level. There, it failed to move below several times since January last year.
Remaining at such a level for this long is a sign that bears are afraid of placing trades below it. In most cases, this situation usually leads to more upside as bulls come in.
The ongoing consolidation could also be part of the accumulation phase of the Wyckoff Theory. It is then followed by the markup phase. A good example of a coin that recently moved to the markup phase is Zcash. This emerged from the accumulation stage and went parabolic within weeks.
Shiba Inu price has other bullish catalysts. For example, the spread between the three lines of the Bollinger Band have narrowed during the ongoing consolidation. In most cases, this price action normally leads to a Bollinger Bands squeeze.
The coin shows a bullish divergence pattern. Both the PPO and MACD indicators keep rising. They now approach the zero line, signaling a momentum shift. At the same time, the Money Flow Index (MFI) has moved to the oversold level.
The most likely Shiba Inu price forecast is bullish, with the initial target being last November’s high of $0.000033. It is about 350% above the current level. A move below the support at $0.0000065 will invalidate the bullish outlook.
Whales are Buying the Shiba Inu Price Dip
On-chain data shows that whales have started buying during the recent Shiba Inu price dip. Data compiled by Nansen shows that whales now hold 106.58 billion tokens.
It’s a big increase from the 102.7 billion tokens they held on November 10 this year. This means that these investors have bought 4.8 billion tokens in the past 9 days.
Whale buying is one of the most common things to look at in fundamental analysis. This is because of their perceived experience in the industry.
Another potential bullish aspect is that the supply of Shiba Inu coins in exchanges has been in a downward trend. For example, the amount of tokens in centralized exchanges has dropped to 283.26 trillion. It’s down from last month’s high of 289 trillion tokens.
Falling exchange balances is a bullish aspect in the crypto market. That’s because it signals that investors are drawing their tokens and moving them to self-custody.
It also sends a signal that investors are not dumping the token as they did before. Also, SHIB’s burn rate has continued rising this week.
Overall, Shiba Inu price has crashed in the past few months. It has consistently formed a series of lower lows and lower highs. However, there are now signs that the coin may be about to rebound as it has formed a bullish divergence pattern.
Crispus is a distinguished Financial Analyst at, bringing over 12 years of expertise in cryptocurrency markets, specializing in Bitcoin and altcoins. Renowned for his sharp insights at the nexus of market trends and breaking news, Crispus delivers actionable analysis to empower investors. His work is prominently featured across leading platforms, including BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com, cementing his reputation as a trusted voice in the financial world.
