SHIB price might have to respond to increasing demand
If history holds true, the Shiba Inu may be preparing for another big price move. When rival cryptocurrency Dogecoin surged following Elon Musk’s Twitter acquisition in late October, blockchain analytics firm Sentiment concluded that SHIB historically followed Dogecoin pumps.
Santiment wrote, “Whatever side of the fence you are on with meme coins like DOGE and SHIB, there is no denying that they have had their pump moments. Shiba Inu has historically followed Dogecoin pumps.”
True to form, Shiba Inu started running alongside it after Dogecoin cooled off a bit, reaching a high of $0.0000151 on October 29. Furthermore, SHIB subsequently gained strength on its Dogecoin pairing.
Currently, Dogecoin is rallying 10% in the last 24 hours and 40% in the past week. If history repeats itself, SHIB could see a major price move as soon as Dogecoin cools down. At the time of publication, SHIB was trading up 2.37% at $0.00000922, while it is up 11.17% on the weekly timeframe.
Furthermore, SHIB price remains in a consolidation phase, which usually reflects its main price action. Since November 16, SHIB price has remained in a range with its resistance and support at $0.0000965 and $0.00000817 respectively.
The daily RSI is tilting slightly upward, suggesting an imminent move; however, because this indicator remains below the neutral level of 50, the general picture remains one of consolidation or range trading.
whales are piling up
Data from cryptocurrency data tracker WhaleStats indicates that the SHIB balances of the top 100 Shiba Inu holders have increased marginally by 0.2%.
Given that these top holders own SHIB assets running into the billions of tokens, the slight 0.2% increase might be worthwhile.
If this trend of accumulation continues, the SHIB price may have to respond to the increased demand. Despite all the reasons mentioned above, it may be more necessary to pay close attention to the market trends.
SHIB mirrors the price of Bitcoin, as it presently has a 97% correlation with the leading cryptocurrency.
