100-Day Support in Jeopardy Amid Whale Sell-off

Shiba Inu Price Analysis: The final week of June initiated on a bearish note, as Bitcoin fell below $62k with an intraday loss of 3.3%. The bearish momentum quickly spread to the altcoin market and especially to the meme sector due to its volatile nature. SHIB, the second largest meme cryptocurrency by market cap, records a 4.68% drop today and hints at a breakdown from multi-month support. Is the correction trend to be extended?

Also Read: This Meme Coin Is Set to Challenge Shiba Inu, Dogecoin, BONK, and Other Dog-Themed Meme Coins’ Dominance

Shiba Inu Analysis: SHIB Faces Bearish Pressure as Whale Dumps 1.08T Tokens

Amid the June correction in the crypto market, the Shiba Inu price witnessed an aggressive downfall starting from $0.00003. The bearish turnaround tumbled the coin value by 42% to reach $0.0000168, while the market cap fell to $9.945 Billion.

However, an analysis of the daily chart shows the downfall is part of flag pattern formation. Under the influence of this setup, the price usually resonates within two falling trendlines, allowing the buyers sufficient time to recuperate bullish momentum.

However, with the increasing selling pressure, the SHIB price teases a bearish breakdown from the pattern’s support trendline.

In a recent development highlighted by on-chain data tracker Lookonchain, a whale deposited a substantial amount of Shiba Inu (SHIB) to Binance. The transaction involved a whopping 1.08 trillion SHIB, valued at around $18.4 million. This strategic move resulted in an impressive profit of approximately $8.3 million for the whale.

A whale deposited all 1.08T $SHIB($18.4M) to #Binance 1 hour ago, making a profit of ~$8.3M!

This whale withdrew 1.08T $SHIB(cost ~$10.07M) from #Binance on Nov 24, Dec 4, and Dec 22, 2023.

He has an unrealized profit of $29M at the peak of $SHIB

!https://t.co/WVWceN0JHe pic.twitter.com/FKWD6cYJiY

— Lookonchain (@lookonchain) June 24, 2024

The whale exit puts additional selling pressure on SHIB to break below the support trendline. A successful daily candle closing will accelerate the bearish momentum and may extend the correction trend to $0.00001195.

However, if the price rose and sustained above the lower trendline, the flag pattern will continue to influence the Shiba Inu coin.

The failed breakdown attempt will bolster buyers to rebound the price by 30% and rechallenge the pattern’s resistance trendline at $0.000022. A breakout from the flag range is crucial for the SHIB to resume a bullish trend.

Technical Indicator:

• EMAs: The 50-week EMA slope, hovering near the $0.00001693 level, will offer buyers additional support to push the coin price higher.
• RSI: The daily Relative Strength Index slope dived to the oversold region of 25% could attack dip buyers in the market.

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