Shiba Inu price prediction – All about THIS risky buying opportunity for traders!

Key Takeaways

Shiba Inu has been trading above a solid demand zone that bulls need to defend. However, the weekly price chart revealed that sellers may have the upper hand right now. 


Shiba Inu’s [SHIB] price has been consolidating above the key demand zone at $0.000012 since mid-August. In fact, a recent AMBCrypto report noted that whales have been accumulating SHIB too.

SHIB Exch Net Position Change

Source: Glassnode

That’s not all though as the exchange net position change has been negative since 17 August.

Here, negative flows represent outflows from exchanges – A classic sign of accumulation.

Shiba Inu Cost Basis DistributionShiba Inu Cost Basis Distribution

Source: Glassnode

The cost basis distribution heatmap is a visualization of the supply density of SHIB across price levels. Warmer colors represent a greater supply acquired at that cost. The $0.000012 area represented a key demand zone, since it was where a sizeable amount of Shiba Inu has been acquired in recent months.

Therefore, bulls have to defend this key support if they want to drive a rally in the coming weeks.

Can Shiba Inu’s price stay above $0.000012, or should traders expect a southbound move?

Shiba Inu likely to drop 15% to weekly range lows

SHIB 1-week ChartSHIB 1-week Chart

Source: SHIB/USDT on TradingView

The weekly chart revealed that Shiba Inu has traded within a range (purple) from $0.0000106 to $0.000016. It has consolidated within a smaller range too, between $0.00012 and $0.000014. If the $0.000012 support fails, SHIB is likely to fall to its weekly range lows.

This is a possibility traders and investors should be prepared for. The OBV made a new low on the weekly charts, signaling seller strength. The RSI was unable to push past the neutral 50-level – Another sign of weakness from the bulls.

Shiba Inu 1-day ChartShiba Inu 1-day Chart

Source: SHIB/USDT on TradingView

Finally, the 1-day chart did not show any strength from the market’s buyers. In fact, the descending trendline resistance (white) outlined seller dominance yet again.

While the $0.000012-area is key, according to the cost distribution heatmap, it may be a risky buying opportunity still.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

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