Shiba Inu experienced a 12% drop in the past month, hitting a two-week low at $0.000012. Buyers are back in the market, hinting at a potential price recovery. Will the memecoin now reclaim its recent highs?
After facing rejection at $0.000015 and struggling to break out of a descending triangle, Shiba Inu (SHIB) has experienced significant downward pressure recently. Over the last four days, the memecoin has indeed seen sustained decline, dropping from a high of $0.0000156 to a two-week low of $0.000012.
This extended decline suggests a marked bearish momentum, as evidenced by the decline in the Stoch RSI. Since a bearish cross four days ago, the indicator has dropped from 100 to just 4.23 at the time of writing.
However, while SHIB is experiencing a strong downward movement, it appears that buyers are seizing the opportunity to buy the dip. AMBCrypto’s analysis indicates that retail buyers and whales have indeed started accumulating SHIB.
Data on order delta and imbalance reveal a higher number of buy orders compared to sell orders in the market. This positive delta and order imbalance suggest aggressive buying, signaling that SHIB is entering an accumulation phase.
Moreover, SHIB’s net spot flow dropped to -2.06 million, down from 3.7 million the previous day. This significant negative decline implies that exchanges are recording more withdrawals than deposits, reflecting strong accumulation.
Whales also play a significant role in this accumulation phase of Shiba Inu. Over the past day, large holders purchased 317.63 billion SHIB tokens, a significant increase from the previous 148.6 billion. At the same time, the outflows from these holders remain low, resulting in a net inflow of 206.9 billion SHIB.
This accumulation occurs as buyers take advantage of the price drop in Shiba Inu, reflecting optimism about an upcoming market recovery. If buyers maintain this momentum, SHIB could potentially reclaim the resistance level at $0.000015.
However, if the bulls fail to reverse the downward trend, SHIB could continue its decline to the lower limit of the channel at $0.0000108.
In the context of a market rebound and a breakout of its 50-day moving average at the current price of $0.0000129, SHIB could start a short-term uptrend of 7% to $0.0000138 (100-day MA).
Here is a practical guide to buy SHIB on Bitget now:
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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