Shiba Inu (SHIB) Price Faces Uncertainty as Whale Moves Stall

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BeInCrypto2024/10/31 11:30

By:Tiago Amaral

SHIB's bullish setup is tempered by weak momentum and whale hesitance. With a neutral RSI, the market appears stable and balanced.

Shiba Inu (SHIB) price is currently in a bullish setup, supported by its position above all EMA lines. However, the narrow distance between these moving averages suggests that bullish momentum isn’t particularly strong.

Whale activity has also been stable, indicating a lack of significant accumulation, which shows hesitancy among large holders. If the current uptrend strengthens, SHIB could target higher resistance, but a reversal might test key support levels instead.

SHIB RSI Is Currently Neutral

Shiba Inu’s (SHIB) RSI is currently at 55.62, down from over 70 just a few days ago. This drop shows that the intense buying pressure that drove the price up has cooled off, bringing SHIB out of overbought territory.

With the RSI declining, the market appears to be stabilizing, with SHIB moving away from the overbought zone.

SHIB RSI. Source: TradingView

The RSI (Relative Strength Index) is a key momentum indicator that measures the speed and magnitude of price changes, ranging from 0 to 100. It helps determine if an asset is overbought (above 70) or oversold (below 30). With SHIB’s RSI at 55.62, it currently sits in a more neutral zone.

This means that buying and selling pressures are relatively balanced, which could indicate a period of price stability or a pause before the next major move in either direction.

Shiba Inu Whales Are Not Accumulating

The number of whales holding at least 1 billion SHIB tokens has remained steady, hovering around 11,000 over the past few days.

This stability indicates that there hasn’t been a significant movement among large holders — neither major accumulation nor distribution for one of the most relevant meme coins in the market.

Holders with at least 1 billion SHIB. Source: Santiment

When whales accumulate, it often signals confidence in future price increases, potentially driving up value. In contrast, selling by whales can put downward pressure on the price.

The current stability in whale numbers implies a lack of strong conviction; whales are not buying more SHIB, which could mean they are waiting for clearer market signals before making their next move.

SHIB Price Prediction: A New Rally Above $0.000020?

SHIB’s EMA lines are currently showing a bullish setup, with the price sitting above all the moving averages and the short-term EMAs positioned above the long-term ones.

This alignment is typically a positive sign, indicating that the recent price trend is upward and gaining support from momentum traders. With the recent rise above $0.000018, SHIB has now a bigger market cap than Avalanche.

SHIB EMA Lines and Support and Resistance. Source: TradingView

However, the distance between these EMA lines isn’t very wide, which suggests that the bullish momentum is not exceptionally strong. A narrow gap between EMAs means that while there is an uptrend, it lacks the strength often seen in strong rallies.

If the uptrend picks up pace, SHIB price could test the resistance at $0.00001959, and breaking that could lead to a move toward $0.00002171, representing an 18% potential price increase. On the flip side, if the trend weakens, SHIB might fall to the support levels at $0.00001758 or even $0.00001583.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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