The SHIB price is calm before the storm when more than 70% of the owners are profitable

After rising to a new high, the value of the SHIB coin meme has fallen dramatically. However, according to data from Intotheblock, despite the huge loss, more than 70% of investors in this digital asset are making profits.

Hodler SHIB is profitable

Intotheblock data also shows 17% of owners are at a loss. This could be because they invested late because they bought the dip after the price fell from its all-time high. However, your investments have the potential for higher returns once the token starts rising again.

In addition, 78% of the total token supply is held by whales. Some analysts have argued that these whales play an important role in the price movement of the meme coin.

SHIB’s growing popularity has benefited a wide range of asset holding wallets as it attracts many new investors to the game. It should also be added that the asset listing event on Coinbase has also helped grow its popularity over the past few weeks.

The high profit potential also meant that the number of holders (wallets) increased over a period of one month. According to ITB, the number of wallet addresses of SHIB holders rose from 706,808 on October 10 to 926,684 on November 8, 2021.

It is interesting that the value of SHIB has increased by more than 100% over the same period.

Despite all of these positives, SHIB remains a very volatile asset. The value of the meme coin has fallen by more than 1% in the last 24 hours, by 9% in the last 7 days and by over 40% against its ATH. Additionally, the asset has lost over $ 7 billion in market cap.

In particular, this volatility was the result of four huge trades by profit-taking investors. Recently, about ten trillion SHIB tokens (valued at $ 586 million) were moved to different wallets.

This volatility could stop in the short term, and the price would rise equally if Robinhood’s token were listed, as over 500,000 people have currently signed a petition asking the platform to list the asset.

SHIB price analysis

• Major support level: $ 0.000050; 0.000044 dollars
• Key Resistance: $ 0.000055; 0.000063 dollars

SHIB’s volatility and volume have been low for the past few days, suggesting that a period of consolidation is in progress before any further move can be taken. When the price is stuck in a tight range, a big breakout is usually expected. By then, the price has created a range between the $ 0.000050 support and the $ 0.000055 resistance.

SHIB’s attempt to break out of the descending triangle shows that the downward trend has stopped, at least for the time being. If the bulls prevail, they can push SHIB back into the uptrend.

The source: TradingView

Technical indicators

Volume: Volume remains low after breaking out of the descending triangle. That could be the calm before the storm.

RSI: The RSI has held out around the 50 level and market forces are pausing before they can drive the RSI either way.

MACD: Although the MACD made a bullish crossover on the 4-hour chart during the breakout of the descending triangle, the momentum that followed was not strong. However, on the daily timeframe, the MACD is drawing higher lows on the histogram, suggesting that the uptrend may return soon.

The source: TradingView

The trend towards SHIB is currently neutral. Although the breakout of the descending triangle is a bullish signal, it lacks the momentum to sustain the uptrend. A break above the critical resistance level of $ 0.000055 is required for a reversal to the upside.

Short term price forecast

It is likely that SHIB will consolidate between current major support and resistance levels. The price has to break out of this range in order to re-enter the uptrend. As the volatility and momentum decrease, the likelihood of a strong breakout increases. It is time to be patient and keep a close eye on the key resistance level.

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

Minh Anh

According to AZCoin News

Follow the Youtube Channel | Subscribe to telegram channel | Follow Facebook page