Shiba Inu price has wavered at a crucial support level, pointing to an eventual rebound in the coming weeks. SHIB was trading at $0.00001345, up slightly from last year’s low of $0.00001055. Let’s explore why the Shiba Inu coin may be a coiled spring ready to pounce if it remains above the support at $0.00001055.
Shiba Inu Price Technical Analysis
The weekly chart reveals that the SHIB price has remained under pressure in the past few months. It has dropped from a high of $0.00003322 in November to its current price of $0.00001345.
The coin has found strong support at $0.00001055, its lowest swing in August last year. That is a sign that bulls are fighting hard to prevent more downside from that level.
The Relative Strength Index (RSI) has remained above the ascending trendline that connects the lowest swing since June last year. Also, the two lines of the Stochastic Oscillator have crossed over and are pointing upwards.
Therefore, it is likely that the SHIB price will act like a coiled spring if it remains above the support at $0.00001055. This event would bring attention to the next significant level of $0.00003322, which represents the highest swing in November and is about 145% above the current level.
However, there is also a risk that the SHIB price will drop, especially when it drops below that support level. A drop below that support will signal further decline to the support at $0.0000055, its lowest point in June 2023. This price is about 60% below the current level.
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SHIB Whales Are Buying
A likely catalyst for the SHIB price is the fact that many whales are accumulating it. The chart below shows that the number of SHIB token holders with between 100,000 and 100 million tokens has been growing over the past few months. That’s a sign that these investors are buying the dip as the coin’s price drops.
The Mean Dollar Invested Age (MDIA) of Shiba Inu has continued rising in the past few months. Its 180-day MDIA figure has jumped to 106 from the year-to-date low of 39. Similarly, the 365-day figure has jumped from 137 in March to 145 today. That is a sign that long-term holders are not selling their coins.
Crypto analysts are optimistic about Shiba Inu. For instance, Javon Marks, a well-known crypto analyst, observed that the coin has formed an inverse head and shoulders pattern, a traditional bullish indicator. He expects the token to rise to $0.000081, a gain of over 512% from its current level. Another analyst pointed to a surge after the TD Sequential indicator flashed a buy signal.
READ MORE: Will Shiba Inu Price Rally as SHIB Burn Rate Jumps, as Whales Dump?
