The week that ends was bearish for cryptocurrencies and some altcoins ended with weekly losses, as is the case with SHIB.
For now, SHIB price is trading at $0.00002252 with daily losses of 0.37%. In addition, it presents a weekly decline of 9.60%. In the last 24 hours, SHIB sees an absence of large transactions above one million dollars. That is, the whales remain inactive.
Although weekends are characterized by fewer movements, this situation can be interpreted as a reduction in activity, as well as volatility. Predicting the factors behind this whale inactivity is somewhat difficult. However, this reduction in a volatile asset like SHIB may result in lower liquidity. A plausible hypothesis is that the whales are waiting for the markets to open on Monday, beyond the general outlook for cryptocurrencies, which tends towards neutrality.
Alternatively, other experts believe that this scenario could be the prelude to another with greater volatility, since accumulated and repressed orders can become subsequent abrupt increases in prices.
On the other hand, the burning of SHIB tokens increased by 56.16% in the last day, according to Shibburn data. Meanwhile, mentions of Shiba Inu in the social media environment decreased slightly by 0.677%, this indicates a fairly neutral current context.
Important Ranges in SHIB Charts
Analysis of SHIB charts show the formation of a consolidation pattern, while prices point towards a narrowing movement. In other words, they form a descending triangle pattern.
According to data provided by IntoTheBlock, at the levels of $0.000021 and $0.000022 there was a strong accumulation by some 54,410 addresses with the purchase of 45.37 billion SHIB, which provides clues about the current context of this token.
On the other hand, a loss from the current levels could trigger a drop to $0.000019. This also allows us to set a resistance range between $0.000023 and $0.000025, which could be interpreted as an area where large liquidations would occur.
The state of the EMAs below this level can be interpreted as the presence of strong bearish pressure. However, SHIB is about to recover the 20 EMA and achieve a price above them in the next session. Thus, its price would be positioned towards a recovery.
At the moment, the Relative Strength Index is trending downwards, which could be interpreted as the bears being slightly in control. However, the whales’ passivity does not allow this to be asserted with confidence.
Memecoins’ Volatility Decreases
This weekend, memecoin volatility dropped significantly, with majors showing sideways movements.
Few interesting movements are observed in memecoins, as the whales have been inactive. However, there is a significant accumulation of PEPE by large whales, while a slightly oversold trend prevails in the case of Dogecoin.
It is worth remembering that the behavior of memecoins are good signals to measure the sentiment of the crypto market and the current climate is one of neutrality tending towards uncertainty.
It is hasty to say that the memecoin season has come to an end, though, as there are still major downward movements to confirm it.
Finally, it is fair to note that the cryptocurrency market is witnessing the recent addition of 140 new memecoins registered on CoinMarketCap, which is a sign that expectation prevails in this market, at least in the short term.
By Leonardo Perez
