- The accumulation of whales created positive sentiments on SHIB’s charts
- A deviation below the bandwidth, followed by a quick recovery, gave a buy signal with a high probability
Shiba Inu [SHIB] has suffered losses since late November, along with the rest of the memecoin sector. Bitcoins [BTC] The battle to regain $100,000 and the associated price volatility did not help the SHIB bulls one bit.
However, the doom and gloom sentiment in the background could not stop a whale from withdrawing 8.18 trillion SHIB from the Crypto.com exchange. These tokens were valued at approximately $195.1 million at the time.
A SHIB buying opportunity near the lows in the range
Source: SHIB/USDT on TradingView
The daily chart showed that Shiba Inu was slowly on the road to recovery after the deep correction in mid-2024. The $0.00002 zone, which was a resistance area before November, remained a support zone at the time of writing.
And yet, the daily timeframe was bearish after the December slump took the price below the 61.8% retracement level at $0.00002325. Since then, the same level has resisted bullish breakout attempts, leading to the formation of a short-term margin.
According to the Awesome Oscillator, capital inflows were neutral and momentum on the daily chart was slightly bearish.
Source: SHIB/USDT on TradingView
The short-term distance formation was clearer on the 4-hour chart. The range lows at $0.000021 temporarily failed on Monday as BTC slid to $89.2k. Since then, Shiba Inu has recovered quickly. This deviation below the lows and the quick recovery was a strong buy signal.
Read Shiba Inu’s [SHIB] Price forecast 2025-26
It meant that there could be a high chance of a bullish price move towards the highs in the range at $0.0000246 in the coming week. However, traders should be careful. The CMF showed that capital flows were slightly negative. Without the buying pressure, SHIB could struggle to break the mid-range resistance at $0.0000228.
Traders can set their stop-loss below the local lows, or at $0.0000202, as the lower fair value differential around $0.0000208 can be expected to stop any downside move.
Disclaimer: The information presented does not constitute financial advice, investment advice, trading advice or any other form of advice and is solely the opinion of the writer
Credit : ambcrypto.com
