Shiba Inu price found support at the $0.000020 level on January 11 after the crypto market triggered a sharp 15% correction during the week. On-chain data shows large investors strategically buying the dip. Is SHIB on the verge of a major bullish reversal?

Shiba Inu price finds support at $0.000020 support as sell-pressure subsides

Shiba Inu price stabilized on Friday after a prolonged downward trend driven by macroeconomic uncertainty and intensified market sell-offs. SHIB fell sharply earlier this week, reflecting the broader altcoin market downturn triggered by external catalysts, including concerns over the U.S. Department of Justice‘s impending $6.5 billion Bitcoin liquidation.

Shiba Inu Price Action, January 10, 2025 | SHIBUSDT (Binance)

The meme token recorded a steep 15% drop between January 7 and January 10, testing critical support at $0.000020. This level emerged as a key defensive line as selling momentum eased and buyers cautiously re-entered the market, SHIB entered a mild 3% rebound in the last 24 hour to hit the $0.000021 at press time on January 11.

The reversal from $0.000020 signals widespread intent to prevent further loss. With bearish sentiment still lingering, SHIB price may consolidate within the $0.000020–$0.000022 range while traders await a broader market recovery.

As markets eye the next significant macro catalyst, SHIB’s price trajectory remains closely linked to broader crypto sentiment. A decisive move above the $0.000022 resistance could pave the way for a potential rebound, but sustained bearish pressure could reignite selling activity.

For now, the meme token appears to have formed a local bottom at the $0.000020 psychological support.

Whales spotted buying 34 trillion SHIB during the market dip

Shiba Inu price witnessed a notable surge in whale accumulation last week as broader markets reeled under external pressures. The turbulence stemmed from the U.S. Department of Justice’s imminent $6.5 billion Bitcoin liquidation, which triggered sharp sell-offs across the cryptocurrency market.

Despite SHIB’s sharp drop to $0.000020, large holders maintained an optimistic outlook, seizing the opportunity to make large purchases at low prices.

On-chain data from IntoTheBlock reveals that whale investors—those holding at least 0.1% of SHIB’s total supply—dramatically increased their net holdings during the downturn.

Shiba Inu Whale Netflows | Source: IntoTheBlock

According to the chart above, whale wallets acquired 34 trillion SHIB within the last 4-days, capitalizing on the low prices. coinciding with the token’s temporary price recovery to $0.000022 by January 10.

This aggressive accumulation reflects a prevailing bullish sentiment among whales, even as broader market conditions remain fragile. Whale activity historically correlates with significant price movements, and their actions during this downturn could set the stage for a recovery in the coming weeks.

Shiba Inu price forecast: Prolonged consolidation before $0.000030 breakout

SHIB price outlook currently hints at a prolonged consolidation phase as bulls face stiff resistance at $0.000025 while holding firm above $0.000020. The influx of whale purchases adds a layer of stability to Shiba Inu’s price action, bolstering the meme token’s prospects amid ongoing market uncertainty.

Technical indicators on the SHIBUSD chart also support this neutral stance.

Shiba Inu (SHIB) is consolidating within a tight range, with price trading near $0.00002207. The chart below shows Bollinger Bands compressing, signifying reduced volatility and the potential for an imminent breakout. SHIB’s price currently hovers above the lower Bollinger Band at $0.00002009, acting as a crucial support.

Shiba Inu Price Forecast | SHIBUSD

The middle band at $0.00002233 is a pivot point, while resistance lies near the upper band at $0.00002457.

On the bullish side, a breakout above $0.00002457 could propel SHIB toward $0.000030, backed by increased whale accumulation and renewed buying momentum. RSI, currently at 44.18, suggests SHIB remains in a neutral to mildly oversold zone. A move above 50 in RSI could validate bullish strength, encouraging buyers to push prices higher.

Conversely, failure to sustain above $0.00002009 risks triggering further declines. A break below this support could intensify bearish pressure, potentially driving SHIB toward $0.00001800.

In summary, the narrowing Bollinger Bands and subdued trading volumes, however, suggest that SHIB may remain range-bound until fresh bullish market catalysts emerge.

The post Shiba Inu Price Forecast: Whales spotted buying 34 trillion SHIB amid crypto market dip appeared first on CoinGape.

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Filed under: News - @ January 11, 2025 10:21 am