Shiba Inu price remains in a deep retracement as demand among retail investors fading. SHIB may be ripe for a bullish breakout as Bitcoin remains above $102,000, and as whale accumulation starts. The closely-watched MVRV indicator has also moved to the buying zone, pointing to further gains.
Shiba Inu Price To Be Boosted By Whale Accumulation
One potential catalyst for the SHIB price is that there are signs that whales have started to accumulate it hoping that it will rebound. According to LookOnChain, one of these whales bought 257.5 billion SHIB coins worth $4.6 million as the price dropped. He now holds over 477.5 billion coins valued at almost $9 million.
Another potential sign of this accumulation is that Shiba Inu balances on exchanges have continued falling in the past few months. There are now 86.22 trillion SHIB coins in exchanges, down from 98 million in April last year. This decline is a sign of more accumulation and increasing SHIB burn rate.
Shiba Inu’s price increases have typically happened when there is more buying by whales. The chart below shows that the popular 365 day MVRV indicator has crossed the zero line. It often rebounds whenever it moves to these levels. It did that in June, July, and August last year.
SHIB Price Technical Analysis as Wedge Pattern Forms
Technicals suggest that the value of SHIB may bounce back in the coming days. The most visible formation is the falling wedge, which has been forming since the coin peaked in December last year.
The two lines of this pattern are now nearing their confluence point, which usually leads to a strong bullish breakout. That move will be confirmed if the coin rises and moves above the upper side of the wedge.
The other technical factor is that the Average Directional Index (ADX), has continued falling, a sign that the downward trend is losing momentum. Also, the Relative Strength Index is nearing the oversold level, which often leads to a bullish reversal.
Therefore, a move above the upper side of the wedge, will raise the possibility of the SHIB price retesting the key resistance at $0.0000333. That target is about 77% above the current level.
Risk To the SHIB Coin Price Bullish View
The main risk for the Shiba Inu price is that the 200-day and 50-day weighted moving averages are about to form a death crosss. That pattern is usually a victory for bears and often leads to more downside. For example, it formed it in June last year and the coin dropped by 40% afterwards.
The post Shiba Inu Price Eyes Bullish Reversal As One Whale Scoops 275 Billion SHIB appeared first on CoinGape.
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