Recently, Shiba Inu’s (SHIB) price has bounced back from a significant six-month low, mainly due to increased activity from large investors, known as whales. A new whale has purchased 220 billion SHIB, worth around $3.11 million, showing strategic buying among big players.
However, despite this price rise, SHIB’s overall trend is still bearish, with two major resistance levels suggesting that higher trading volumes are needed to confirm a possible bullish trend.
Shiba Inu Whale Activity and Market Trends
Recent data from IntoTheBlock’s large transaction count metric shows a rise in whale transactions, with SHIB transfers over $100,000 increasing.
A notable example is a new whale, identified by Arkham Intelligence as “0x4B5C,” who recently acquired 220.34 billion SHIB from Coinbase. This move highlights growing confidence among major investors. Additionally, the proportion of long-term holders among whales has risen to 78%, boosting confidence among retail investors.
Despite a 9.2% increase in open interest (OI) for SHIB over the past 24 hours, indicating more capital flowing into the coin, the cumulative volume delta (CVD) has fallen to -204B. This suggests that more participants are selling than buying, pointing to a bearish trend despite recent gains.
The combination of rising OI and a declining CVD typically signals that short positions are opening as Shiba Inu approaches resistance levels.
Shiba Inu’s Technical Analysis and Market Outlook
Technically, Shiba Inu (SHIB) is still trading within a falling channel and is currently below both its 50-day ($0.00001557) and 200-day ($0.00001867) exponential moving averages (EMAs).
For a bullish reversal to be confirmed, SHIB needs to break through key resistance levels between $0.00001800 and $0.00001900. The Relative Strength Index (RSI) is at 45.60, indicating a mostly neutral to bearish sentiment, with a slight lean towards oversold conditions.
Additionally, the Chaikin Money Flow (CMF) is at -0.12, showing a minor outflow of capital and aligning with the overall bearish sentiment.
In summary, Shiba Inu’s market situation is complex, with a short-term recovery overshadowed by broader bearish trends. While whale activity provides some hope for future rallies, the path to a sustained bullish trend depends on breaking through significant resistance levels and reversing current bearish indicators. Investors should monitor these technical levels closely and stay updated through reliable market analyses.
Important:Â Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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