During Bitcoin’s climb to May’s high of $71.1K, the meme coin sector proved to be the most profitable, trending tokens by market capitalization yielding returns over 40%. However, as the price of Bitcoin settled back to around $69K in recent hours, several meme coins are facing a strong rejection from sellers. Interestingly, SHIB price failed to trigger any significant upward move during the intense buying demand in the market despite a massive surge in whale transactions.
SHIB Records 400% Jump In Whale Transactions
Shiba Inu (SHIB) faces challenges overcoming crucial resistance. As the Ethereum spot ETF approval deadline approaches, SHIB, an ERC-20 meme coin, might react to the news. Analysts predict a likely breakout, providing investors with a good opportunity to acquire SHIB before its price potentially shoots up.
Read more: Bear Trap Alert: Crypto Market Records An Outflow Of $53 Billion With Bitcoin Dropping Below $70K!
For over the last few weeks, SHIB price has been consolidating within a range bound zone. This consolidation has been serving as an accumulation zone, as confirmed by Santiment’s Whale Transaction Count indicator.
A spike in this on-chain metric after a market crash or during consolidation typically indicates that institutional investors are accumulating assets. Conversely, if the index spikes following a market rally, it suggests these investors might be preparing to sell.
From April 12 to May 21, the Whale Transaction Count consistently spiked during market dips, indicating ongoing accumulation by institutional investors. Data from IntoTheBlock shows that the large transaction volume surged by nearly 417% in the last four days. The metric jumped from the low of $28.2 million to $145 million.
Additionally, Shibburn reported the removal of a significant number of SHIB tokens from circulation. The latest data indicates that 10,824,730 SHIB tokens were burned in the past 24 hours. Consequently, the burn rate—measuring the proportion of tokens sent to burn wallets—has increased by 59% as of this report.
If the SEC approves a spot Ethereum ETF, it could potentially lead to a significant increase in the prices of altcoins and memecoins.
What’s Next For SHIB Price?
Shiba Inu has been fluctuating within a symmetrical triangle pattern for the past few days, indicating an equilibrium in market demand and supply at current prices. Currently, buyers are attempting to push the price beyond the descending resistance line. At the time of writing, the SHIB price stands at $0.0000255, marking a decline of over 1.1% in the past 24 hours.
The market’s bullish traders are targeting a move above $0.000028. A successful breakout above this downtrend line could suggest a weakening of bearish forces, potentially driving the price to $0.000033, where significant bearish resistance is anticipated.
Conversely, bears are ready to test the support level at $0.0000226 once more. If this level is breached, it may lead to an increased sell-off, sharply driving the SHIB/USDT pair down towards the next major support at $0.0000185, negating the gains from the recent upward movement.
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