Shiba Inu Price Surges Amid Market Strength and Liquidity Runs
The price of Shiba Inu (SHIB) has been on a steady rise for the past four days, reflecting growing market strength for the cryptocurrency. This upward momentum follows a liquidity run, during which market makers pushed the price below key support and resistance levels to trigger liquidity trapped in those zones. Additionally, this rally coincides with a major hack on a prominent crypto exchange, resulting in a staggering $22 million theft, including 9 billion SHIB tokens. The incident has raised concerns about the potential impact on SHIB’s price and the wider market.
Despite this, SHIB remains in an uptrend, with the potential to extend its weekly gains by up to 8%, assuming market conditions stay favorable. Meanwhile, the broader crypto market is also experiencing renewed optimism. Many analysts are speculating that Bitcoin could soon reach the $100,000 milestone, driven by increasing institutional adoption and growing demand.
Indodax Hack and Its Impact on Shiba Inu Price
The upward trend in SHIB’s price comes in the wake of a significant security breach at Indodax, Indonesia’s leading cryptocurrency exchange. The hack resulted in the theft of $22 million worth of digital assets, including 9 billion Shiba Inu tokens, as well as Bitcoin, Ethereum, and Tron.
This breach has sent shockwaves through Indodax’s user base, which numbers over 5 million, and raised serious concerns about the exchange’s security protocols. In response, Indodax has confirmed the breach and has temporarily suspended its website and app to implement necessary security updates. The market has yet to fully absorb the news, and the fallout could affect SHIB’s price in the coming days.
Why Liquidity Runs Can Benefit Shiba Inu’s Price?
A liquidity run occurs when an asset’s price moves sharply through key levels, often due to heavy buying or selling pressure. The price action in Shiba Inu over the periods of August 22-26 and September 5-8 illustrates two such liquidity runs.
These events can be favorable for SHIB’s price, as they often lead to heightened volatility, which creates opportunities for traders. Rapid price movements disrupt established market structures, offering potential entry points for investors.
Recent data from IntoTheBlock reveals a 367% surge in whale activity for SHIB over the last 24 hours, with large transaction volumes reaching 3.21 trillion SHIB ($43.52 million). This suggests increased buying or selling activity among major holders. Additionally, a 164% spike in whale inflows on September 9 indicates that large investors may be accumulating SHIB, which could drive further price gains.
The price of SHIB, which is currently trading at $0.00001321, is down 1.4% over the last 24 hours. However, the increased activity among large holders suggests that they may be anticipating a near-term price rise.
SHIB Price Could Gain Another 8% This Week
Shiba Inu has shown remarkable strength over the past four days, with candlestick analysis indicating rising buying pressure as the market recovers from the recent liquidity run. While SHIB has retraced some of the gains made in the last week, the price action suggests more upside potential.
Currently, SHIB has returned to a more stable consolidation phase. If it follows the same pattern as the previous supply-side liquidity run, the price could rally to $0.00001450, representing an 8% gain from its current level.
However, resistance around $0.00001360 may slow down SHIB’s upward movement. Nonetheless, increasing volatility and whale activity could break through this level at any time.
On the downside, if SHIB fails to hold above the $0.00001310 level, it could drop to $0.00001270, potentially invalidating the current bullish outlook and forming a head-and-shoulders pattern that could send the price as low as $0.00001.
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