Shiba Inu Coin Squeezed in a Tight Range, Despite Large Whale Buying SHIB
Skerdian Meta • 2 min read
Shiba Inu has become one of the most popular cryptocurrencies in terms of internet searches, and it is attracting massive interest from players and users around the globe, as a play-to-earn P2E game. This was especially true during the pandemic, which resulted in increased use of the internet. However, despite that, the sentiment has been quite negative for the Shiba coin since the end of October, after a massive surge that month.
Shiba Inu Daily Chart Analysis – Consolidating Between MAs
Shiba taking its time to decide where to head next
During the bearish period of the last few months, moving averages, particularly the 20 SMA (gray) and the 50 SMA (yellow), provided resistance at the top for this cryptocurrency. The price declined from $0.000088 to $0.000017, but a support zone formed at around $0.000020, and we saw a reversal earlier this month, when SHIB/USD surged by around 75%, increasing to $0.000035.
But the surge stopped right at the 100 SMA (green) on the daily chart, which has been providing resistance for more than a month. We saw a retreat late last week, after the initial rejection of the 100 SMA, but the 50 daily SMA (yellow) turned into support, and now the trading range is getting really narrow, as Shiba gets squeezed between these two moving averages.
Interest Remains High for Shiba Inu, Ahead of Shibarium
Shiba is preparing to launch Shibarium, which is a Layer 2 solution, which will offer faster and cheaper transactions. Since Layer 1, where Shiba currently operates, suffers from congestion, the aim is to increase adoption among users, as Shiba prepares to enter the GameFi scene. The testnet for the Layer 2 solution is already underway, and everything seems alright. Players will be able to purchase and auction Shiba Lands within Shibarium.
Meanwhile, Steven Cooper continues to press ahead with accumulating SHIB tokens to burn, in order to send its price higher. He has already removed 1.1 million SHIB coins so far. We heard that a mega whale in the Binance Smart Chain, with total holdings of more than $2.38 billion, is taking a major interest in Shiba Inu, having bought 139,929,254,883 coins for over $4.20 million. This didn’t have much impact on the price of Shiba, however, but it shows that there is large interest at play for Shiba Inu. Shiba is not showing too many signs of life now, but it will probably resume the bullish move once the market sentiment improves again.