Crypto analyst SHIB Knight reveals a critical level at which he plans to buy Shiba Inu, anticipating the ongoing accumulation to conclude with a “massive pump.”
The market watcher disclosed this at a time when Shiba Inu is battling to retain some of the gains it garnered during the previous uptrend. Recall that SHIB recently spiked 17% within three days to retest the $0.00003 price territory. However, this price upswing met stern resistance at the local top.
As a result, Shiba Inu faced a retracement, with SHIB Knight disclosing that he would leverage the buying opportunity from this correction to procure more tokens. At the time of his disclosure, SHIB traded for $0.00002637, firmly above the pivotal $0.000025 level and looking to defend the support at $0.000026.
Buying more $SHIB at these levels. Accumulation will end up with a massive pump. pic.twitter.com/CEbuKXy4GR
— $SHIB KNIGHT (@army_shiba) May 30, 2024
Prevalent Shiba Inu Accumulation
Nonetheless, the $0.000026 support has given in at the reporting time, with the ongoing correction seeking to erase the gains from the previous upsurge. Despite the shift in trends, analysts such as SHIB Knight contend that Shiba Inu is only trading within an accumulation phase, a period preceding an imminent price explosion.
Notably, during this phase, investors, especially whales and sharks, continue to increase their holdings at lower price levels, as they await this price explosion. The Crypto Basic revealed earlier this month that Shiba Inu whales had purchased a massive 4.35 trillion SHIB tokens since March.
Last month, three new whale addresses procured nearly 184 billion SHIB from cryptocurrency exchanges in one fell sweep. Most recently, whales amassed 503 billion SHIB in one day. This rapid accumulation is due to Shiba Inu’s price trading at a discount. However, SHIB Knight believes this discount would soon wear off, expecting the recovery push to lead to a “massive pump.”
Multiple SHIB Price Targets
While the analyst failed to make any price projections, others have predicted lofty price targets for when this pump occurs. For instance, crypto market analyst Javon Marks presented a target of $0.0000886 for Shiba Inu when the next phase of price rally comes up. In a previous analysis, SHIB Knight also set a goal of $0.00006.
Meanwhile, as of press time, Shiba Inu has broken below the $0.000026 support to currently trade at $0.00002560. Amid the correction, SHIB must hold above the 20-day EMA hovering around the $0.000025 pivotal support at $0.00002497. A breach below this level could lead to steeper declines.
In addition, Shiba Inu’s relative strength index (RSI) has slumped to the 52 level. While this represents weakness, the current position suggests that SHIB still has more room for growth. The commodity channel index (CCI) at 40 further confirms this market position.