Analyst Identifies Strong Shiba Inu Support Zone That Can Take SHIB Back to $0.000024

A notable market watcher identified as SHIB Whale on X identifies a Shiba Inu support zone around $0.000016 that could help push SHIB back to $0.000024.

The analyst’s market commentary comes on the back of the ongoing correction that has triggered shocking declines in the Bitcoin’s (BTC) price and the prices of altcoins. Due to its higher volatility, Shiba Inu has experienced steeper slumps, currently down 33.11% this month.

Since reaching a high of $0.00002945 on May 29, Shiba Inu has been on a downward slope, recording lower lows and lower highs on the daily timeframe. This has led to the formation of a descending channel on the daily chart, as pictured below, with a resistance stationed at $0.00002622 and a support around the $0.000016 region.

Such a channel indicates that investor sentiment is bearish, with consistent selling pressure causing prices to fall. However, it also shows occasional rallies that are unable to break above the resistance at the upper trendline despite this resistance constantly dropping to lower levels.

Shiba Inu Finds Support at $0.000016

Leveraging a 2-hour chart, analyst SHIB Whale revealed that Shiba Inu currently trades within a descending triangle amid the ongoing price decline. The formation of this triangle began at the start of the month, with SHIB now close to the peak of the structure. 

$SHIB
It’s a Very strong Support Zone For the
Shib Expecting some bullish Momentum From here ???????? pic.twitter.com/34FCR59oPw

— SHIB Whale X (@SHIBWhaleX) June 22, 2024

Interestingly, data from SHIB Whale’s chart indicates that the lower trendline of this descending triangle forms a robust support level that could help Shiba Inu hedge against any steeper declines. This support rests on the $0.00001670 price level. Per IntoTheBlock data, this zone features 58,560 addresses which procured 93.98 trillion SHIB at an average price of $0.000016.

The analyst predicted further Shiba Inu drop to this level but projected the support to hold. Notably, Shiba Inu has already slipped to the established support level, currently changing hands at $0.00001665 at the reporting time. 

The most immediate support at this region stands at $0.00001633, representing Shiba Inu’s last line of defense. Should this level hold firmly, SHIB Whale expects Shiba Inu to leverage the support as a launchpad to reclaim the $0.000024 price level.

Prices Stabilize Amid Decreased Whale Activity 

Meanwhile, as prices look to stabilize, SHIB is now witnessing a decrease in large transactions and a drop in whale activity. According to ITB data, the volume of whale transactions worth at least $100,000 reduced to 747 billion SHIB on June 22, a weekly low, and hit 1.11 trillion tokens yesterday, still lower than the weekly average.

In addition, transaction volume involving bulls and bears (addresses trading 1% of the 24-hour volume) has reduced. Bulls only purchased 1.18 trillion SHIB on June 23, while bears sold 1.14 trillion tokens on the same day. At this volume, the market saw an excess demand of 48.13 billion SHIB.

The reduction in large transactions amid stabilizing prices could mean that large holders (whales) are holding onto their assets rather than trading them, indicating a possible consolidation phase. 

This could suggest that the market is finding a support level, where significant selling pressure is diminishing, and investors are waiting for potential future catalysts before making large moves. The excess demand, which was also observed on June 21, could further bolster the chances of a rebound.