Shiba Inu Rebounds As Whale Transactions Provide Support
A New SHIB Whale Buys 171 Billion Shiba Inu Coins
Shiba Inu is currently trying to settle back above $0.000050 as new Shiba whale transactions, which led to a purchase of 171 billion Shiba Inu coins, provide support to the cryptocurrency.
According to Whalestats, a Shiba whale bought 124 billion Shiba Inu coins. This transaction was followed by a purchase of 47 billion Shiba Inu coins.
Traditionally, whales are viewed as “strong hands”, as they do not sell their positions during corrections and wait for the price of a coin to increase before unloading their holdings.
When a cryptocurrency attracts more whales, its volatility tends to decrease as the share of retail traders drops. Retail traders are typically viewed as “weak hands” as they are more focused on short-term profits and usually follow near-term momentum, contributing to rallies and sell-offs.
The whale transactions may provide support to Shiba Inu, although it remains to be seen whether these transactions will be sufficient enough to prevent the token from declining to multi-week lows as crypto markets remain under pressure.
Shiba Inu received support near $0.000047 and is trying to settle back above the resistance level at $0.000050. RSI is in the moderate territory, and there is plenty of room to develop additional upside momentum in case the right catalysts emerge.
In case Shiba Inu settles above $0.000050, it will head towards the 20 EMA at $0.00005235. A move above the 20 EMA will push Shiba Inu towards the next resistance at $0.000055.
On the support side, Shiba Inu needs to settle below $0.000047 to continue its pullback. The next support level for Shiba Inu is located at $0.00004450. In case Shiba Inu declines below this level, it will move towards the support at the 50 EMA at $0.00004235. A successful test of this support level will open the way tot he test of the support at $0.000040.
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