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Crypto Sheriff suggests Shiba Inu accumulation phase is close to an end, pointing to a potential bull run to $0.000045 as RSI indicates an oversold condition.
Shiba Inu (SHIB) has recently experienced notable market activity despite a 7.50% decline in the past 24 hours. The token currently trades for $0.00001568. The meme coin’s accumulation phase continues, hinting at a potential end to this consolidation period.
In #SHIB, the accumulation continues after the 5X rally, but RSI values seem to be at the bottom now!
We may have reached the end of the accumulation. We may see a new bull run in $SHIB soon!🚀 pic.twitter.com/AOFxx1A97M
— CRYPTO SHERIFF (@Gem_Sheriff) July 3, 2024
Market analyst Crypto Sheriff highlights that SHIB remains in an accumulation phase after a significant 5X rally. This period involves reduced volatility, where traders consolidate positions.
Further, supporting the sentiment, the Relative Strength Index (RSI) for SHIB is currently at 25.04, per Sheriff’s post, which is below the standard oversold threshold of 30. An RSI this low suggests that SHIB might be oversold, indicating potential exhaustion of selling pressure and a possible price reversal.
Crypto Sheriff believes that SHIB may be nearing the end of its accumulation phase, potentially leading to increased price action. Historically, such phases can precede bullish trends as buying momentum builds up. The analyst’s chart suggests a possible recovery toward the yearly high above $0.000045
Ownership Distribution and Accumulation
Notably, Shiba Inu’s ownership details reveal substantial inflows and outflows among large holders. Inflows peaked around 7.5 trillion SHIB. Similarly, outflows show significant variation, with a peak of around 7.5 trillion SHIB. This large holder activity indicates that prices tend to rise with higher inflows and drop with higher outflows.
During this press, the Relative Strength Index had climbed to 42.54, placing it in the neutral zone but still trending towards the oversold region. Meanwhile, the Accumulation/Distribution value stands at -800.421T, still reflecting a declining trend.
The combination of these indicators further points to a market currently dominated by selling pressure. However, the imminent oversold RSI hints at the possibility of a reversal should investor sentiment shift towards buying.
Recent Market Movements and Whale Activity
Amid SHIB’s recent market turbulence, a new whale wallet has accumulated over 583.7 billion SHIB tokens from Binance, according to The Crypto Basic. This accumulation comes as SHIB’s price plummeted 45.87% from its May 29 high of $0.00002945, now trading at a 19-week low.
Despite the decline, some market participants view this downturn as a buy-the-dip opportunity. The 583.7 billion SHIB procured from Binance costs $9.725 million. At the May 29 high, the same amount would have demanded $17.192 million, a difference of $7.4 million.