Shiba Inu price has ended a 7-week losing streak. As Whales Buy 1.6 Trillion SHIB Tokens, Is The 200 Day SMA Going To Rise By 40%?
Shiba Inu (SHIB) has made an impressive breakout from a seven-week trend-down as most crypto prices recovered due to easing geopolitical tensions.
Shiba Inu price is trading at $0.0000117 today, June 24, up 8% in 24 hours, while the daily trading volume was $221 million.
These gains also coincide with the purchase of 1.6 trillion SHIB by whales. As bullish indicators align, can SHIB price rally by 40% to a key resistance level?
Shiba Inu price breaks 7-week down trend.
Shiba Inu's price has been on a steep decline over the past seven weeks as sellers dominate the price action.
However, it has now broken out of that downtrend, marking a major bullish reversal for the top meme coin since early May.
A breakout suggests bearish momentum is finally weakening and short-term bullish interest is returning to support a recovery.
While this breakout is significant for $SHIB , the bulls’ strength will only be confirmed if the price breaks above the 50-day SMA level of $0.0000134. A strong move above this would confirm that the trend is in favor of buyers and traders chasing profits from short-term bullish rallies.
However, for the Shiba Inu price to initiate a long-term bullish trend, it first needs to break through the resistance at the 200-day SMA level of $0.000016. If it reaches this moving average, it will increase by about 40% from the current price.
An RSI indicator that remains within bearish territory indicates that buying pressure is weak following a breakout from the descending parallel channel. Until this indicator rises above 50, SHIB is at risk of falling into the descending parallel channel to continue its decline.
Key Levels to Watch
Apart from watching the SMA levels, the other key level to watch in Shiba Inu price is the PoC line which sits at $0.0000151.
This line usually represents a critical point, where pressure on both the buying and selling sides is strong. If $SHIB price moves above this PoC, it will confirm the market structure shifting from bearish to bullish.
The 61.8% Fibonacci level is also important for Shiba Inu’s rally. This Fib level stands at $0.000014, and if this meme token can overcome this resistance, it will also mark a trend reversal.
On the downside, traders should look for a key demand level at $0.0000090. This zone acts as support as it initiated a strong rally for the $SHIB price in early 2024. If this meme token fails to maintain this support, it could trigger a downtrend.
Whales Scoop 1 Trillion SHIB
Whales could be poised to move higher as IntoTheBlock data shows that large holder net flow increased from $64 billion to $1.66 trillion in the space of 24 hours. This indicates that whale wallets added 1.5 trillion SHIB tokens to their holdings during the day.
The ongoing bullish rally also supports the bullish thesis for Shiba Inu's price forecast. This is because whales, unlike retail traders, use advanced trading techniques, and they can expect a strong move to the upside, hence the recent buying.
In summary, Shiba Inu price has ended a seven-week downtrend streak after recording one of its longest daily candlesticks. If this uptrend continues, bulls could target a 40% rally to $0.000016 to confirm a full bullish reversal. Meanwhile, whales seem to be accumulating dips as they bought a total of 1 trillion tokens.