Rune Christensen, co-founder of MakerDAO [MKR] bought 7.41 billion Shiba Inu [SHIB] tokens on the 1st of March. But he did not stop there. According to data AMBCrypto got from Spot On Chain, Christensen bought another 17.62 billion on the 3rd of March.
Between the first purchase and the second one, SHIB’s price increased by 60%. Interestingly, moments after he added the latest one, worth $400,000, SHIB’s price jumped by another 20%.
However, Christensen is not the only crypto founder involved in interacting with the Shiba Inu token.
The “Sun” ditches what the “Maker” wants
A few weeks back, Tron’s [TRX] founder Justin Sun accumulated some SHIB and sent them into cold storage. However, a recent post by blockchain security platform PeckShieldAlert, confirmed that Sun had transferred $544,400 worth of SHIB to Poloniex.
Transferring the tokens into the exchange suggests that Sun might want to book profits. However, Christensen’s purchase implied that the memecoin could still have great long-term potential. At press time, SHIB changed hands at $0.00002691. This represents an impressive $182.50% seven-day increase.
As of the 25th of February, the Shiba Inu native token was 89.51% down from its All-Time High (ATH). However, Glassnode data showed that the price increase has changed the condition, and SHIB was 74.38% away from its 2021 high.
If SHIB maintains the run it has had over the last few weeks, the price could rise toward $0.000066 in the long run. But if it does not, it could be difficult to retest the ATH. But what signals are the technical indicators giving?
SHIB targets a 2021 repeat
From a technical point of view, the Fibonacci extension showed that SHIB’s price might trend high. As of this writing, the 0.618 Fib level was at $0.000030. This indicates that entries around that region could be profitable in the long term despite the price currently being lower.
Furthermore, the 3.618 Fibonacci extension was at $0.000070, meaning Shiba Inu could hit that price. If SHIB does, the holders of the token who have weathered the storm of the bear market, might heave a sigh of relief.
At press time, the 50 EMA (blue) crossed over the 200 EMA (yellow), reinforcing the notion that SHIB’s bullish outlook was solid. Beyond these indicators, AMBCrypto also examined the Chaikin Money Flow (CMF). The CMF, as of this writing, had a reading of 0.18.
This reading indicated that buying pressure has been increasing. Should bulls continue to enforce this trend, then SHIB might hit $0.000035 in the short term. However, traders might need to look out for the CMF.
If the CMF crosses 0.20, SHIB could be termed overbought and the price might retrace. However, a downward reversal does not imply that the bullish thesis is over. But the bullish momentum could cool off for a while before it resumes again.
Source : AMBCrypto by Victor Olanrewaju / Mar 5, 2024