Shiba Inu strong performance in recent days, fueled by whale accumulation and a bullish RSI signal, has eased concerns of a potential drop below $0.00001.
Amid the recent market downturn that hit major assets like Shiba Inu, some experts speculated that SHIB could add a fifth zero to its price.
For context, Shiba Inu’s price dropped to $0.00001188 on August 25, marking its lowest in two weeks. At the time, it almost lost the $0.000011 support level, which could have led to a further downturn below the $0.000010 mark.
Why Shiba Inu May Not Add Another Zero Soon
However, recent market developments have eased concerns about Shiba Inu dropping below $0.00001 and adding a fifth zero to its price.
Bullish Technical Indicators
Data from TradingView suggests that Shiba Inu is no longer in oversold territory as its Relative Strength Index (RSI) is neutral at 47. In addition, Shiba Inu has rebounded above the nine-day moving average, mitigating any downside selling pressure.
At the moment, Shiba Inu has surged above its August 25 low of $0.000001188. It is currently changing hands at $0.00001270, representing a 24-hour spike of 2.72% and a 1.45% weekly improvement.
Spike in Whale Activity
Large investors have fueled Shiba Inu’s latest rally, easing fears that SHIB might add another zero to its price. Specifically, one whale has been accumulating SHIB from the San Francisco-based exchange Coinbase recently.
Over the past three days, an unknown investor withdrew approximately 204.3 billion SHIB from the exchange into a new Ethereum wallet through 14 transactions. Most of these transactions contained at least 15.31 billion SHIB tokens.
The accumulation attracted the attention of Shiba Inu enthusiasts and also fueled optimism for a potential rally. Amid Shiba Inu’s renewed momentum, boosted by bullish technical indicators and increased whale activity, the likelihood of SHIB adding another zero to its price in the near term has slightly diminished.
The last time Shiba Inu traded with five leading zeros after its decimal was on February 27, 2024. It also came close to adding another zero this year, on June 22, when its price dropped to $0.00001010.
However, SHIB has held steady above $0.00001. Instead of adding a zero, analysts suggest that Shiba Inu could rally toward a new all-time high of at least $0.0001 this cycle.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
