Investors have purchased approximately $24 million worth of SHIB since Sunday
Shiba Inu (SHIB), an Ethereum-based meme coin inspired by Dogecoin, was launched in 2020 by an anonymous developer named Ryoshi. Unlike Bitcoin, which is intended to be scarce, SHIB is designed to be abundant, with a total supply of one quadrillion. The Shiba Inu ecosystem also supports projects like an NFT art incubator and the development of a decentralized exchange, Shibaswap.
SHIB’s price surged dramatically on Sunday, and according to David Gokhshtein, the founder of Gokhshtein Media and former U.S. congressional candidate, there is still potential for further gains. Data from IntoTheBlock indicates that in recent days, over 400 large transactions have been recorded, marking a 1,554% increase. A large transaction typically involves sums over $100,000, and these surges often indicate heightened activity from institutional investors either buying or selling.
According to WhaleStats, the top 100 investors holding Ethereum-based tokens have bought approximately $24 million worth of SHIB since Sunday. At this point, the total value of SHIB held by these investors has reached $202,286,128.
Another positive factor is that the U.S. government has reported that inflation may have peaked in July, boosting investor confidence that a bull market could be on the horizon. The U.S. Consumer Price Index rose by 8.5% YoY, lower than expected, and U.S. major market indexes ended the week on a positive note, influencing the cryptocurrency market positively.
Kristalina Georgieva, Managing Director of the International Monetary Fund, confirmed that the U.S. central bank is on track to tame inflation, and investors are hopeful that the Federal Reserve will opt for a 50 basis point rate hike in September rather than a 75 basis point increase.
While these developments suggest that the cryptocurrency market, including Shiba Inu, could see further advances in the near term, it’s also worth noting that fund manager Peter Schiff has indicated that Bitcoin and many other cryptocurrencies could be heading for significant declines. He predicted that Bitcoin, which peaked at $69,000, could soon drop to the low $10,000 range, and he advised traders to take advantage of the current rally and exit their positions.
Shiba Inu (SHIB) Technical Analysis
Shiba Inu (SHIB) has risen more than 40% in under 24 hours, from a low of $0.0000126 to a high of $0.0000179. The current price stands at $0.0000163, still more than 50% below the highs it reached in February 2022.
The chart below highlights the trendline, and as long as SHIB remains below this trendline and the resistance at $0.000020, we can’t confirm a trend reversal. As such, the price remains within the SELL-ZONE.
Key Support & Resistance Levels for Shiba Inu (SHIB)
The chart, which spans from January 2022, illustrates the main support and resistance levels that can help traders predict the price direction. The risk of further decline for Shiba Inu (SHIB) has not dissipated. However, if the price breaks above $0.000020, it could signal a trend reversal, with the next target around $0.000025. The current support level is at $0.000012, and if this level is breached, it would be a “SELL” signal, potentially sending the price down to $0.000010. If the price falls below $0.000010, which is a strong support level, the next target could be as low as $0.0000080 or even lower.
Factors Supporting a Price Increase for Shiba Inu (SHIB)
The recent increase in SHIB’s trading volume suggests potential for price growth, and if it surpasses the resistance level at $0.000020, the next target could be around $0.000025. WhaleStats data reveals that the top 100 Ethereum-based coin holders have invested approximately $24 million in SHIB since Sunday.
Additionally, Shiba Inu’s price is often correlated with Bitcoin’s movements. If Bitcoin’s price climbs above $25,000, SHIB could follow suit and rise to higher levels.
Factors Indicating a Potential Decline for Shiba Inu (SHIB)
Despite the 40% gain in less than 24 hours, traders should be mindful that the price could revert to the levels seen in June. If SHIB breaks below the support at $0.000012, it would signal a “SELL” and open the way for a potential drop to $0.000010. A drop below $0.000010, which is a strong support zone, could lead to a further decline to $0.0000080 or lower.
Furthermore, SHIB’s price is closely tied to Bitcoin’s price. A drop in Bitcoin’s value typically has a negative impact on SHIB’s price.
Shiba Inu Price Predictions from Analysts and Experts
Shiba Inu’s price surged this Sunday, and David Gokhshtein, founder of Gokhshtein Media and former U.S. congressional candidate, believes SHIB still has room to grow. According to data from IntoTheBlock, over the past several days, more than 400 large transactions were recorded, marking a 1,554% increase. On the other hand, fund manager Peter Schiff warns that Bitcoin and many other cryptocurrencies are likely to experience significant drops, advising traders to exit their “long” positions and take advantage of the current rally.
