Bitrabo Editorial
The price of Shiba Inu (SHIB) fell below the 0.0000080 level on June 5, 2023, marking its first-time decline in six months. This followed the news of Binance’s legal issues with the Securities and Exchange Commission (SEC), which affected the memecoin market on Monday. However, despite the price correction, on-chain data indicates that whale investors remain bullish and are positioning themselves for an early rebound.
Shiba Inu Whales are Not Discouraged by the Price Crash
According to the chart, large transactions involving SHIB began to rise at the start of June, and they did not slow down despite the price correction on June 5. Large transactions reflect trading activity among whale investors and are calculated by summing up transactions exceeding $100,000. An increase in large transactions during a price correction indicates that institutional investors are confident of an upcoming price rebound.
For instance, on June 1, SHIB had 16 large transactions. By June 5, the number had more than doubled to 40 transactions. If bullish whales continue on this trajectory, the selling pressure from paper-handed whales and retail investors could be absorbed, which is likely to trigger an early rebound in SHIB’s price.
Traders are Queuing Up Orders to Buy the Dip
Shiba Inu traders are looking to buy the dip around the $0.0000075 mark. The exchange on-chain market depth chart shows that SHIB holders have placed orders to purchase 971 billion tokens, whereas sellers have only put up 610.74 billion SHIB for sale. This indicates a supply shortage of around 361 billion SHIB across crypto exchanges, which could trigger upward pressure on the price as buyers compete to fill their orders quickly.
SHIB Price Prediction: Possible Rebound to $0.000010
Based on bullish activity among investors, SHIB’s price could rise towards $0.000009 in the coming weeks. However, IntoTheBlock’s Global In/Out of the Money Around Price (IOMAP) data indicates that the resistance could be seen around $0.0000085, as highlighted in the chart that reflects 9,610 million investors that bought 7.8 trillion SHIB at an average price of $0.0000080 could sell once they break even.
The bears could invalidate the bullish stance if SHIB’s price falls below the crucial $0.0000075 support level. But, the 99,000 investors who purchased 35 trillion SHIB at a maximum price of $0.0000080 will likely prevent the drop. However, in an unlikely scenario, SHIB could fall further towards $0.000006 should the support level fail to hold.
Disclaimer
This article is for informational purposes only and should not be considered investment advice. Bitrabo values accurate and unbiased reporting, but market conditions may change without notice. Always conduct your research and consult with a professional before making any financial decisions.