As 2024 begins, the Shiba Inu (SHIB) cryptocurrency is in a critical phase, striving to regain a key value of $0.00001. Previously, it peaked on December 17 when it came up to $0.000011 but made a downturn after, falling to $0.0000085 at its lowest point yesterday, January 8.
This recent drop can be attributed to rumors of a rejected Bitcoin ETF on January 3, leading to a low of $0.000009. But now, as the wave of optimism impacts the market sentiment and the ETF approval is marked for tomorrow, January 10, the tides might turn for this token.
On-chain data suggests that SHIB whales have been using this opportunity to accumulate. Considering its price history, it could only be a matter of time before it goes parabolic.
According to ITB data , Shiba Inu has attracted considerable interest from large investors (those possessing at least 0.1% of the circulating supply), with over a 1,200% increase in whale netflows in the last 30 days.
This metric measures the number of inflows minus outflows pertaining to these addresses, meaning that a positive netflow indicates accumulation.
The interest led to notable market changes, including a price rise on January 1 and a 63% increase in trading volume, surpassing briefly $140.6 million. Although SHIB’s price has fluctuated, indicating volatility, the overall trend suggests a potential for further upward movement.
On the price chart of SHIB, it could have started its bull market with a series of higher highs and higher lows from June last year.
December 17’s peak of nearly $0.000012 was a breakout above the descending structure, and the decline that followed led the price back to retest its for support. The horizontal level of around $0.0000094 overlaps with this retest, which is why this support is significant.
But the previous high of $0.000011 was only around 6% lower, meaning there isn’t much strength in this uptrend. If the support at the present levels holds and causes a bounce, another higher high could be seen but with limited upside potential.
More tumbling above $0.0000094 is likely to be seen with the first bull market correction yet to come and potentially make another retest of these levels.
If this plays out, the price of SHIB could be ready for a parabolic runup as it would form a higher price plateau and establish strong support. The whole area that can be seen on the daily chart could be interpreted as the accumulation zone. With another higher high and a higher low that is expected, it would form a leading diagonal of a larger five-wave impulse.
Only after it clears the first bull market correction can we see a parabolic rise for its higher degree wave 3 that would have the potential to make a rise of $0.000020, which is 126% from the current levels.
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.