Oct 3, 2024

6thTrade

On-Chain Dynamics and Whale Activity

Recently, Shiba Inu (SHIB) has seen a significant shift in on-chain dynamics, marked by a decrease in large transaction volumes from nine trillion SHIB to five trillion SHIB. This decline suggests a reduction in whale activity, which has often played a key role in major price movements. Despite the reduced transaction volumes, SHIB's on-chain health remains strong. 73% of SHIB’s supply is still held by large holders, indicating that whales continue to hold a significant portion of the asset, which reflects confidence in its longer-term potential.

Currently, 46% of holders are at a loss, while 49% are in profit, suggesting a balance that still leans slightly toward a positive outlook. This kind of distribution highlights the resilience of SHIB’s ecosystem even amid mixed market movements.

Technical Analysis

SHIB is trading close to the $0.00001600 level, with several important technical factors coming into play, especially regarding support and resistance zones.

  • Support Levels:

    • The 50-day Exponential Moving Average (EMA), located at $0.00001578, is a crucial support level. If SHIB can hold above this level, there is potential for stabilization and perhaps a gradual recovery. The 50 EMA has historically been a good indicator of reversal zones, where buying pressure could increase.

    • If there is a move below $0.00001578, the next significant support is around $0.00001452, which could provide a more substantial base to hold off further declines.

  • Resistance Levels:

    • The first resistance lies at $0.00001760. A breakout above this level could pave the way for a move towards $0.00001800. Though the drop in whale activity might make this more challenging, overcoming this resistance could lead to renewed upward momentum.

Chart Observations

From the chart:

  • The yellow line (likely the 200-day EMA) shows SHIB currently below this level, pointing towards a more cautious, but potentially stabilizing trend in the larger context.

  • Red markers near price peaks seem to indicate areas where momentum has weakened, while green markers suggest potential buying opportunities or points of increased buying interest.

Since May, the overall trend has been leaning towards bearish, with multiple failed attempts to break key resistance points. However, if the price starts closing above both the 50-day and eventually the 200-day EMA, it could indicate a strengthening trend reversal.

Outlook

The current price level near $0.00001578 is crucial. If support holds, SHIB has the opportunity to regain some upward momentum. A successful rebound at this support level could generate a positive trend, especially if the price can push through $0.00001760 and eventually challenge higher resistance zones.

  • Key Support Levels: $0.00001578 (50 EMA) and $0.00001452.

  • Resistance Levels to Watch: $0.00001760 and $0.00001800.

In summary, holding above $0.00001578 would be a constructive signal for future price action, with the possibility of resuming an upward trajectory. A stable base around current support levels, combined with a break through resistance, could set the stage for a positive move in the near term. Keeping an optimistic view, the ability to build above these levels may unlock new opportunities for continued growth and recovery. $SHIB




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Disclaimer: The content of this article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are highly volatile and may lead to substantial financial loss. Always perform your own research and consult a qualified financial advisor before making any investment decisions. The opinions expressed are solely those of the author and do not represent the views of the publisher or its affiliates. Investing in cryptocurrencies involves inherent risks, and past performance is not a reliable indicator of future results. Please exercise caution.