Altcoins

ETH Whales Double Down SHIB Accumulation, But Technicals Hints At Bearish Scenario

Written by: Elena R

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Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

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Jul 29, 2022

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While the market as a whole rose today, meme coins also followed the suit. Shiba Inu is up 8.1 percent today, reversing the downward trend it experienced over the previous week and protecting the meme coin from disproportionate losses. While this may have temporarily made investors happy, SHIB is yet to experience growth as it is currently trading at the same price of $0.000012 as it did during the nearly 60% drop in April and May.

Whalestats reports that Ethereum (ETH) whales have been purchasing SHIB. 334 billion SHIB tokens were purchased in a volume as high as $3.54 million throughout the course of the final 24 hours of July 27.

These were gathered in two significant transactions. Initially, “Gimli,” an Ethereum whale, purchased 187 million SHIB tokens. A little over an hour later, Whalestats revealed that “Bluewhale 0195,” another ETH whale, had purchased an additional 147 million SHIB. SHIB has gained pace ever since the announcement. As of July 27, it had increased by 1.36 percent, outpacing the growth of numerous other cryptocurrencies.

What Technicals Hint At?

The gains made by SHIB may have surprised people or been supported by whale behavior. The pricing analysis indicates that despite a higher burn rate, SHIB shouldn’t have increased on an uptick. According to the chart shown below, its prior levels did not indicate a bullish movement.

shib

The Awesome Oscillator (AO) was on the edge of dropping below equilibrium, according to the chart, indicating that SHIB would follow a bearish move. Similar to how SHIB was expected to travel sideways, the On-Balance-Volume (OBV) indicated this.

This research suggests that the whale pump into the SHIB ecosystem may have contributed to the price increase.Data from Santiment suggested that the volume of SHIB had not necessarily increased significantly. Additionally, the daily circulation fell from 3.32 trillion to 996.17 billion. Without a doubt, while supplies had increased. However, these metrics may make it unlikely that there will be a significant rally.

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Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

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