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Key Insights:
- Shiba Inu price flashed a bearish signal on a couple of indicators on the daily timeframe chart.
- Coinbase transferred about $70 million in SHIB tokens to an undisclosed wallet.
- SHIB was among the top 3 cryptocurrencies with bearish sentiments.
Shiba Inu (SHIB) price continues to struggle together with other memecoin despite the fact it had not surged as others did in the previous weeks.
The memecoin community has been employing the burn mechanism to reduce the token supply, which has helped keep its capitalization afloat. Howver, are the price struggles set to continue?
Shiba Inu Price Flashes A Sell Signal
Shiba Inu price action on the daily timeframe was trading in a sideways consolidation, where it rejected off the lower support at $0.000011. As SHIB price traded below the upper resistance at around $0.000017, the prospects for going higher remained subdued as the memecoin was still in a bearish structure.
More telling, the Money Flow Index (MFI) had hit the overbought zone and started to flick to the downside, suggesting bearish sentiment. The MACD also printed a bearish signal after the histogram turned red. Also, the daily trading volume was so low that it screamed diminished urgency to trade the token.
However, a bullish sentiment could also be in the build-up as the price of the memecoin had formed what can be termed as a potential double bottom. The double bottom could lead to a price reversal if the neckline pattern was broken and the price stayed above it for an extended period.
What was more exciting was that institutions were boarding the train, suggesting now could be the ideal time to buy SHIB. But why was that so?
Coinbase Moving SHIB Tokens
According to CMC TLDR, the Shiba Inu price was down about 1.23% in the last 24 hours as of press time. The daily trading volume had also reduced significantly by about 40% hitting a value of $331 million. All these signaled a calm market that could be gearing up for a move up.
The anticipation of a move stemmed from the actions of the Coinbase exchange. Usually, institutions load up prices, and rallies start, which are later joined by retailers mostly at peaks. That being said, Shiba Inu enhanced its ecosystem and now supports Coinbase, Ledger, and multichain wallets across the Shibarium and Ethereum.
On this count, Coinbase moved about $70 million SHIB to an undisclosed wallet, intensifying the institutional interest in the token now that it was at a great discount. This prompted the question, Is this the calm before the storm? And why?
Historical data shows that whenever exchanges moved their crypto to custodial wallets, the coins rallied months or weeks later. This could mean that SHIB was also getting set up for the same, but was not certain. This is because sometimes exchanges make these moves to lure participants into buying the token and then dump it.
SHIB Price Market Sentiment
Also worth noting at this juncture, when the Shiba Inu price flashed a ‘sell signal’, was its overall sentiment. When writing, a widely accepted analytics platform, Market Prophit. Showed that the SHIB price was among the top 3 cryptos with bearish sentiment from the crowd. It was accompanied by PYR and Bitcoin (BTC).
On the smart money side, SHIB was not in a strong position, dominated by BTC, SPX, and GME. This was a glimpse of positivity, as the crowd sentiment is often wrong.
However, now that Bitcoin also has a bearish sentiment, the overall crypto market could be inclined to follow the mood. That said, caution was warranted, and a watchful eye could help spot the confirmation of bullishness from the ongoing accumulation.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss. That may occur from investing in or trading. Please do your research before making any financial decisions.
