As a seasoned researcher with years of experience in the cryptocurrency market, I’ve seen more than my fair share of bull runs and bear markets. The recent uptick in Shiba Inu (SHIB) price is intriguing, but I must admit, it leaves me cautiously optimistic rather than fully convinced.
On Thursday, Shiba Inu‘s price bounced back, reaching a six-month low following the recent market turmoil. Despite the upward trend in its current price, the overall direction remains negative. There’s an increase in whale activity, with new investors accumulating approximately 220 billion SHIB, equivalent to $3.11 million.
Shiba Inu hasn’t quite reached the point where it could become bullish yet; there are two significant obstacles ahead. To clear these hurdles, Shiba Inu needs a substantial increase in trading volume.
Uptick in SHIB Whale Activity Signals Accumulation
As a crypto investor, even amidst the bearish market sentiment, I’ve noticed an active presence of Shiba Inu whales. This is evident from the Whale Transaction Count metric, which monitors individual transactions exceeding $100,000 in SHIB. Recently, there seems to be a surge in whale activity surrounding Shiba Inu, as suggested by IntoTheBlock’s large transaction count indicator.
On August 8, there was a significant rise in the frequency of substantial SHIB transactions compared to August 7. This trend suggests growing investor attention, which could potentially boost the value of Shiba Inu.
Additionally, Arkham Intelligence records a new smart whale that bought billions of SHIB over the past 48 hours. The whale identified as “0x4B5C” bought 220.34 billion SHIB worth $3.11 million from Coinbase. Consequently, SHIB long-term holders, who are usually whales, have increased to 78%, inspiring confidence among non-holders.
The rise of the SHIB open interest (OI) over the last 24 hours to 9.2% signals an inflow of capital into the meme coin.
Additionally, the SHIB cumulative volume delta (CVD) dropped to -204B, signaling that more people are selling than buying.
Increasing OI and price may signal shorts opening as the SHIB price approaches a potential resistance zone. Additionally, increasing OI and a dropping CVD show shorts are opening, which is a bearish signal for the SHIB price.
Will Shiba Inu Price Breakout?
The SHIB‘s price generally tends to decrease, indicated by the downward sloping channel (orange line). At present, the price is below not only the 50-day average ($0.00001557) but also the longer 200-day EMA ($0.00001867), supporting the negative trend. Yet, there seems to be a brief upturn as the price tries to escape the descending channel, hinting at a possible short-term reversal.
The movement of Shiba Inu’s price encounters resistance at approximately $0.00001800 to $0.00001900 (marked in orange on the chart), close to the 50-day Exponential Moving Average and the 200-day EMA, as well as in areas near the 200-day EMA. On the other hand, Shiba Inu’s price is bolstered by a falling channel’s lower boundary around $0.00001000 and at the $0.00000800 level, which has previously served as a strong support zone.
As a researcher examining the Shiba Inu (SHIB) price dynamics, I’ve observed an uptick in bullish sentiment, evident by the appearance of larger green candles on the chart. Yet, it’s important to note that the general trend still leans bearish. This surge could potentially be a brief reversal before we resume our descent in the overall downtrend.
45.60 on the Relative Strength Index (RSI) suggests a position that’s neither bullish nor bearish, but slightly leaning towards a bearish outlook and approaching oversold conditions. There’s potential for price increases, yet the momentum seems weak. The Chaikin Money Flow (CMF) is at -0.12, signaling a slight reduction in capital inflow, which supports the bearish trend.
If the price of Shiba Inu increases and goes beyond its 200-day moving average, this could indicate a robust market, disproving the negative prediction. The Shiba Inu price might then climb higher towards the potential resistance levels at approximately $0.000023 and $0.000028.
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2024-08-09 13:40