During the early hours of Monday morning, an Ethereum whale made a huge Shiba Inu [SHIB] transaction involving more than 49.6 billion tokens. As per whale data aggregating platform WhaleStats, the bought tokens were cumulatively worth over $1 million.
It has been observed in the past that whenever whales have aggressively added tokens to their bags, SHIB’s price has taken off. Shiba Inu’s 1400% rally in October last year serves as a testament to the same.
So, has the whale accumulation phase already begun? Is Shiba Inu destined to go to the moon soon? Well, to retort to the same, it becomes essential to zoom out and weigh in a couple of pivotal factors.
Zooming Out
As far as the big picture is concerned, whales have not been that agile of late. As can be noted from the snapshot attached below, both, the number and volume of transactions >100k have been revolving around their lows of late.
In February, spikes were noted on both the charts here and there, but whales did not necessarily make their presence felt and the token kept consolidating. In fact, as highlighted in an earlier article, this token was one of the top sold tokens by Ethereum whales last week.
The absence of buy-side momentum was further highlighted by the not-so-appealing RSI reading. This indicator was seen hovering below its SMA at 40.25 at the time of press.
Shiba Inu’s capped prospects
Before coming to a feasible conclusion, it is important to note that Shiba Inu has been exchanging hands around one of its strongest supports – $0.00002. During the downtrend phase in January, the same level resurrected the token, and SHIB has traded above the same ever since. Thus, going forward, this level will continue playing a crucial role.
As far as the upside is concerned, Shiba Inu does have the potential to glide upwards by 15%-30%, depending on the thrust it receives from the buyers.
Currently, a very narrow gap separates the 50-day MA and the 23.6 Fib level. So, an incline to these levels would translate into a 15%-17% rally for Shiba Inu. From there on, if the said thresholds flip into supports, SHIB would be able to extend its rally up to 32% to $0.00002903. The same would coincide with the token’s 200-day MA.
The said ROIs might seem to be fancy at the moment, but for them to turn into reality, buyers would have to step into the picture. This means that whales would have to end up enduring additional responsibility. More so, because they collectively own close to 70% of the token’s total supply. A failure to do so would see SHIB continue consolidating in and around the $0.00002 mark.