Shiba Inu (SHIB) has recorded an impressive recovery over the past week, but traders expect another downfall for its price.
SHIB is up by 2% in the past 24 hours and is trading at $0.0000194 at the time of writing. The asset briefly reached a one-month high of $0.00002 on July 16 and faced correction to $0.0000187 a few hours later.
SHIB price, RSI, open interest, whale activity and funding rate – July 17 | Source: Santiment
Moreover, Shiba Inu’s market cap is sitting at $11.4 billion, making it the 12th-largest crypto asset and second-largest meme coin in the market. Its daily trading volume, however, declined by 27% over the past 24 hours — currently hovering at $500 million.
According to data provided by Santiment, the number of whale transactions consisting of at least $100,000 worth of SHIB increased by 121% in the past 24 hours — rising from 81 to 179 unique transactions per day.
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The decline in Shiba Inu’s trading volume with increased whale activity shows that the meme coin might face high price volatility due to large whale movements and potential price manipulation.
Data from the market intelligence platform shows that the SHIB total open interest dropped from $59.6 million to $57.1 million over the past day. Per Santiment, the total amount of funding rates aggregated by Shiba Inu plunged below the zero mark — currently sitting at negative 0.003%.
At this point, the amount of short-position holders is dominating long-positioned traders with the expectations of a price fall.
An upward movement of over 5% could potentially bring around $2.5 million in liquidations for Shiba Inu.
Notably, the SHIB Relative Strength Index (RSI) is hovering at 61, according to Santiment data. The indicator shows that the meme coin is slightly overbought at the reporting time. An RSI of 50 or lower could potentially put SHIB back in the bullish zone.
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