Shiba Inu is recovering 40% despite large sales of SHIB whales

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Shiba Inu (SHIB) started its new weekly session in the green as it continued its bullish retracement move from last week’s low of $ 0.00002058.

SHIB price hit an intraday high of $ 0.00002907 on October 11th, generating over 40% return from its ongoing recovery trend. In doing so, the Dogecoin-inspired meme cryptocurrency observed a prolonged spike towards its technical resistance level near USD 0.00002978, as shown in the graph below.

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SHIB / USDT 4-hour price chart. Source: TradingView

Extended rally ahead of us?

The Shiba Inu chart also shows traders’ intent to accumulate SHIB tokens when price tests the 20-4H exponential moving average (the 20-4H EMA; the green wave) as support.

For example, the cryptocurrency plunged over 40% on October 7th as Shiba Inu’s addresses valued at 1 million to 10 million SHIB dropped over 31 billion tokens, the largest in six months, according to Santiment data. However, the price rebounded as traders started accumulating SHIB tokens near the 20-4H EMA.

In addition, Shiba Inu’s ongoing retracement was based on a possible correlation between the 1 million to 10 million SHIB address dump and its price. Santiment found that Shiba Inu’s price rises every time after SHIB millionaires sell their stocks, as shown in the graph below.

Shiba Inu supply distribution. Source: Santiment

This shows the micro-traders’ intention to absorb massive sell-offs.

Retail mood moons

According to Google Trends, the bullish retracement on the SHIB market coincided with an increasing number of Internet queries for the keyword “Shiba Inu”.

Web data shows a surge in the Shiba Inu trend in the United States over a 12 month interest period, suggesting booming retail interest. At 92, the trend is closer to the highest popularity value of 100, which was last seen in the second week of May. It suggests that more internet users are looking for information about Shiba Inu.

Google searches for “Shiba Inu”. Source: Google Trends

Nevertheless, only 18 Internet inquiries for the keyword “How to buy Shiba Inu” came out during the same period. Still, interest rates shot up 260% compared to the previous week.

History of two indicators

From a technical standpoint, SHIB’s recent rally seems to have invalidated a bearish setup that Cointelegraph discussed in one of its earlier reporting.

Related: Shiba Inu is now one of the top 20 cryptocurrencies, with SHIB price up 300% in 9 days

In particular, SHIB price broke out of an otherwise bearish descending triangle pattern bullishly as it closed above the top trendline of the structure with an increase in trading volume. While the breakout is still awaiting confirmation, it has increased the prospects for the bull market to continue.

The reason for a longer uptrend is a makeshift bull pennant, which usually drives the price up by the amount of the previous uptrend. In other words, SHIB’s breakout above its bull pennant pattern could push its price to $ 0.000004713.

SHIB / USDT 4-hour price chart with bull pennant setup. Source: TradingView

If the price falls back into the pennant area in the meantime, there is a risk that the setup of the descending triangle will be reactivated. SHIB may see a correction towards USD 0.00002195 followed by a negative breakout towards USD 0.00001000.

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every step of investing and trading involves risk, so you should do your own research when making a decision.