Key Insights:
Shiba Inu has been stuck at the price range of $0.00001 since the beginning of the year after rallying in December 2023. This is despite all the price action in the broader crypto markets.
However, that might change with a massive 231 Billion $SHIB accumulation on Robinhood that took place on January 18, 2024.
We have also used on-chain and technical analysis to decode if it is the right time to accumulate.
Shiba Inu has tried hard to become more than just a meme coin. It launched its own Layer-2 blockchain Shibarium in the month of August 2023. The blockchain was aimed at several things such as bringing NFTs, DApps and DeFi to the ecosystem as well as burn tokens to alleviate price.
However, despite all high value burns and activities of the ecosystem, the price of $SHIB has remained stuck near the price range of $0.00001 since the first week of January 2023.
This is despite a bull rally in the broader markets on the back of a Bitcoin approval. The overall market share of broader markets have jumped about 16% from $1.56 trillion to $1.81 trillion.
Also, due to the inactivity of Shiba Inu, it has been pushed to the 17th rank in market cap from the 12th rank a few weeks ago in 2023.
Yes, despite all challenges $SHIB still remains a whale's favorite. We have reported two on-chain data points in this article which clearly shows that Shiba Inu is still a whale's favorite.
On Jan 18, 2023 more than 231 billion $SHIB, valued at $2.3 million, were accumulated on Robinhood. The accumulation appears to have taken place by Robinhood which now holds a staggering $36.66 Trillion $SHIB valued at $366 million. This was pointed out by Arkham Intelligence.
Further, On-Chain investigation by us showed that there was a staggering 15x jump in accumulation by Whales. As of 18 Jan 2023, about 78% of the total circulation is controlled by whales making it one of the top cryptocurrencies preferred by whales.
Another whale tracker, Large Transaction Index by Into The Block shows that there has been a almost three-fold increase in the large transaction in the past week.
There were 14 large transactions greater than $100k on January 13, 2024. That figure rose to 40 transactions by January 17, 2024 clearly showing an increase in whale activity.
Hence, it is clear that whales are buying $SHIB which makes it a sweet spot for retailers as well to follow the smart money. However, retailers cannot enter and exit markets multiple times like whales.
So, we have used technical analysis to identify the entry and exit points which are helpful in making the most out of the current opportunity.
The price has remained stuck at $0.00001 for more than two weeks as of January 17, 2024.
Looking at the daily charts, we can see that the price has been in a downward journey since Dec 16, 2023 from $0.00001161.
Technical indicators like RSI and MACD have also been showing the same downtrend. This is expected to change soon with RSI approaching 40. Earlier on January 07, 2024 when the RSI approached 40, it changed its trend from downward to upward. The same is expected to happen again soon.
Once RSI touches these levels, the price might approach the range of $0.00000901 on or about January 22, 2024. Those could make a good accumulation levels.
However, a stoploss is also necessary to protect capital in case trends do not fructify. The stoploss for this setup should be at $0.00000880.
Targets can be $0.00001018, $0.00001073 and $0.00001161.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.