- A 26% rebound to $0.000055 is possible before another leg down
- SHIB could plummet even more if whale sells bags
Shiba inu continues to fight selling pressure amid speculation surrounding the intentions of the biggest whale in the dog-themed crypto investing community.
While the crypto is seeing some demand reload in late Friday deals, it remains largely bearish.
A whale with over 40 billion SHIB tokens
SHIB’s price drop this week follows a whale’s decision to move more than 40 trillion tokens to four different wallets. The transactions, which were in batches of 10,000,000,100,000 each, could be worth over $2.4 billion at the current price of about $0.000051. Coins were worth a lot more by the time the coin meme hit its all-time high last week.
SHIB’s price has dropped 12% in the past 24 hours, with a negative outlook on the daily chart deepening the meme coin’s woes over the past week.
After hitting highs of $ 0.000086 on October 28, Shiba Inu began its steep decline as profit taking accelerated during the week. This has seen the Dogecoin (DOGE) rival decline by more than 40%, and is currently trading near $0.000051 according to data from CoinGecko.
SHIB price: Dead cat rebound or more pain towards zero?
On the 4-hour chart, SHIB / USD has rebounded to support near $ 0.000044 and could extend its gains to $ 0.000055.
However, with prices below the 20 EMA and 50 SMA in the given timeframe, it’s likely another leg down sees the token retest this week’s support levels.
Crypto analyst pseudonym HornHairs said that Shiba Inu is likely to see a dead cat bounce here.
In technical analysis, a dead cat bounce refers to a short term rebound in the price when in a broader downtrend. Although it is showing signs of a recovery, it usually does not signal a reversal.
Below these levels, it could be catastrophic for SHIB holders. Increased selling could likely tank prices to zero if the whale “decided to sell [his] bags.”
