Shiba Inu was in an uptrend from November 22 until its next high of $0.00001 on December 6, making a rise of 38%. It consolidated in that area, but yesterday, December 11, the price dropped by 13% in one day.
However, it quickly recovered by 6%, forming a V-shape candlestick formation, indicating that buyers have entered the market and scooped up the token. As on-chain evidence suggests, these buyers are SHIB whales, which showed an increased activity.
Does this mean the price of SHIB is now headed to a new high?
According to the data from IntoTheBlock , the number of large transactions (over $100,000) has increased dramatically in the past 24 hours. It went from 33 txs on December 9 to 118 today.
Worth noting is that its recent highest point was December 6 of 194 txs when the price of SHIB spiked to a new high of $0.00001.
Looking at the USD value of these transactions, we can see an increase from $19.5 million on December 9 to $69.32 million on today’s high.
This paints a bullish picture of SHIB’s price outlook as a newly found interest among whales has emerged.
From its yearly low of $0.000064 on June 12, the price of SHIB attempted to break out from the descending structure, which ended as the third lower high. However, on the next downturn, a first higher low was made on October 19, and then a move resulted in a breakout above the descending trendline.
December 12 high of $0.00010 is still the same as the last one, but that might change soon. Yesterday’s decline of 13% retested the broken resistance for support, and the daily candle snapped back by 3.6%, closing above it.
We could interpret this movement as wave 4 of the lower degree correction, and now that it has ended, another high could be ahead. A proper bounce must be seen before we can expect this high, as for now, the price is barely managing to maintain above the descending resistance.
But if it does make a bounce and continues moving upward, a new high of $0.000014 would be possible by the end of the year or at the start of next.
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.