Is Shiba Inu Whale Activity A Sign of Upcoming Price Volatility?

Whale activity with Shiba Inu tokens (SHIB) has raised the interest of investors as a large transaction of 4 trillion SHIB worth $99 Million was moved to a new wallet.

The movement happened at a period of market consolidation, leaving many wondering how SHIB price would react.

According to on-chain data, the transaction came from the address 0x42219, one of the largest SHIB holders.

After Friday’s massive transaction, it still possesses over 7 trillion SHIB tokens or 0.7302% of the overall supply.

The receiving wallet ‘0x633be’ is relatively new and has only two transactions, with the first one being a test transaction of 100000 SHIB a few hours prior. As of now, the receiving wallet is holding 4 trillion SHIB.

Subsequent investigation showed both addresses are related to a digital asset management firm, BitGo, suggesting a likely internal fund transfer.

SHIB Experiences Market Correction After Weekly Rally

Shiba Inu has faced a retraction, dipping 5% in the last 24 hours. SHIB is currently trading at $0.0000243 which is 24.25% down from the weekly high of $0.00002943 posted on November 12th.

This comes after quite a bullish trading week where SHIB experienced a 28% rally starting at $0.00001926. However, there is confidence in the market regarding Shiba Inu despite the ongoing correction.

Despite the decline, some analysts have suggested this is due to profit taking and further market consolidation rather than issues related to Shiba Inu itself.

In addition, the optimism in the Shiba Inu ecosystem remains intact as other members of the community expect the token to increase in value.

Lucie, who is the marketing lead for Shiba Inu, stated that an attempt at reaching $0.00006861 could be made during the next surge. Achieving this price would be 190% up from its present trading price of $0.00002368.

Projections of this nature have led to prospects on how the SHIB token can overcome its resistance levels.

Despite the current correction, various indicators have emerged to reverse the short-term trend preserving the bulls’ interest among traders and investors.

Technical Analysis Points to Continued Volatility

Shiba Inu’s price analytical outlook reveals that the token is approaching extremely high volatility. The Relative Strength Index has pulled back from extreme overbought territory indicating a period of consolidation.

Nonetheless, the fact that SHIB manages to stay above the weekly low means there is support and could push up again.

Moreover, the Bull-Bear Power (BBP) signal has a negative inclination over the periods indicating bearishness in the market.

Nonetheless, a current price bounce means there is emerging buying activity as SHIB bounces back from a particular low to mean that it might further go up if support levels are strong.