Shiba Inu (SHIB) has been on a downward trajectory in June, mirroring a broader correction in the cryptocurrency market. This decline has sparked analysis regarding potential support levels and future price movements.
A recent analysis by SHIB Whale, a crypto analyst on X, points to a descending channel on the SHIB daily chart. This pattern typically indicates bearish sentiment, with consistent selling pressure pushing prices lower. The channel is characterized by a resistance line originating at $0.00002622 and a support zone around $0.00001670.
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While the descending trendline suggests ongoing selling, the analyst highlights the $0.00001670 as a strong support level. This could be interpreted as a sign of potential buying pressure accumulating despite the bearish trend.
Shiba Inu (SHIB) Nears Support Level
According to SHIB Whale’s chart, the descending triangle began in early June. The token is currently nearing the apex of this triangle, with a critical support level resting at $0.00001670. SHIB is trading at $0.00001677, showing a 5.25% decline over the past 24 hours, and sitting eerily close to the resistance level.
This support area is significant because, according to IntoTheBlock data, it coincides with a zone where roughly 58,560 addresses acquired a combined 93.98 trillion SHIB at an average price of $0.000016. A cluster of buying activity at this level suggests it could act as a buffer against further price declines.
Analyst Predicts Short-Term Dip Followed by Potential Rebound
The analyst predicts a further drop for SHIB, reaching the support level of $0.00001670. However, he posits that this support will hold, preventing a steeper decline. SHIB is already close to the resistance level, and the next step is a rebound.
SHIB Whale emphasizes that if this support level holds firm, it could serve as a springboard for a rebound, with the analyst projecting a potential price increase back to $0.000024. This will send SHIB above the $0.00002 resistance level, and a prominent analyst believes surpassing that resistance level can send SHIB to $0.0001.
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Decreased Whale Activity Hints at Consolidation
Interestingly, there has been a decrease in large transactions and overall whale activity alongside the price stabilization. IntoTheBlock data reveals a decline in whale transactions exceeding $100,000, suggesting these whales might be adopting a wait-and-see approach rather than actively selling.
Furthermore, trading activity between high-volume bulls and bears has also dipped. This could signal a potential consolidation phase as the market searches for equilibrium.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Times Tabloid is not responsible for any financial losses.
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