According to crypto analyst Yashu Gola, a sharp pullback to the upside is emerging as the individual frenzy around the Shiba Inu (SHIB) marks testing May highs. The meme coin has started its new weekly session in the green as it continues its bullish tracking action from last week’s low of $0.00002058.
“Even though the whales sold, micro traders sucked in the big sales”
cryptocoin.com As we reported, SHIB’s price hit an intraday high of $0.00002907 on Oct. 11, gaining over 40% returns from the continued recovery. In doing so, the Dogecoin-inspired meme coin saw a long rise towards the technical resistance level near $0.00002978, as shown in the chart below.
Crypto analyst Yashu Gola interprets the chart as follows:
The Shiba Inu chart also shows the intention of traders to hoard SHIB tokens when the price tests the 20-4H exponential moving average (20-4H EMA; green wave) as support. For example, the cryptocurrency fell more than 40% on October 7 as Shiba Inu’s addresses worth 1 million-10 million SHIB abandoned more than 31 billion tokens, the biggest in six months according to Santiment data. However, the price recovered as traders started accumulating SHIB tokens near the 20-4H EMA.
The analyst states that the Shiba Inu’s ongoing correction takes cues from a potential correlation between its 1 million–10 million SHIB address dump and its price. Santiment noted that the price of the Shiba Inu has rebounded each time after the SHIB millionaires left their holdings, as shown in the chart below.
According to the analyst, this indicates the intention of micro traders to absorb large sales.
How is the individual sensitivity of SHIB?
The upward trend in the SHIB market has coincided with an increasing number of internet queries for the keyword “Shiba Inu” according to Google Trends.
Web data shows an increase in the Shiba Inu trend in the United States over a 12-month interest time frame, indicating increased retail interest. At 92, the trend is closer to the peak popularity score of 100, last seen in the second week of May. It shows that more and more internet users are looking for information about the Shiba Inu.
However, only 18 internet queries came up for the keyword “How to get a Shiba Inu” during the same period. However, the interest rate increased by 260% compared to the previous week.
What the two indicators for meme coin say
On a technical front, crypto analyst Yashu Gola states that SHIB’s recent rebound has invalidated the bearish trend.
Specifically, the meme coin price turned bullish from an otherwise bearish descending triangle pattern while closing above the upper trendline of the structure with the increase in trading volume. While the breakout is still awaiting confirmation, it raises the possibility that the uptrend will continue. The reason for an extended rise is a temporary bullish pennant that typically sends the price as high as the previous upside move. In other words, a breakout of SHIB above the bullish pennant pattern could send its price to $0.00004713.
Meanwhile, the analyst reminds that if the price bounces back inside the pennant range, there will be a risk of re-enabling the descending triangle setup, noting that in doing so, the SHIB could see a correction towards $0.00002195 and then a negative breakout to $0.00001000.
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