In a continuing bull market, the second largest meme coin Dogecoin [SHIB] has been struggling since it broke the downtrend line on November 12.
However, data from on-chain analysis companies show that whales and institutions are showing strong interest in meme coins, leading to significant accumulation.
Dogecoin whales increase their holdings
On-chain analysis company IntoTheBlock reports that whales and institutions holding SHIB tokens valued between $1 million to $10 million have increased their holdings by 425% in the past 30 days. This indicates strong institutional interest during this consolidation phase.
This development suggests that big players are preparing for a potential breakout. Additionally, it also implies potential buying opportunities and uptrends in the coming days.
SHIB technical analysis and key levels
According to expert technical analysis, SHIB is currently consolidating near a strong resistance level of $0.000029 in a very narrow range. Consolidation near resistance levels is often seen as a potential buy signal, as traders and investors use this level to accumulate tokens.
Based on recent price trends, if SHIB breaks this area and closes above $0.0000295 on the daily chart, then this meme coin is likely to surge 50% to $0.000044 in the coming days.
Currently, SHIB is in an uptrend, with its daily trading price above the 200 exponential moving average (EMA). At the same time, its relative strength index (RSI) indicates bullish momentum in the coming days, remaining below the overbought region.
Sentiment from on-chain indicators is mixed
Despite the bullish outlook from technical analysis, SHIB's on-chain indicators show mixed sentiment among traders. According to Coinglass, the meme coin's open interest (OI) has decreased by 10.25% in the past 24 hours.
The decline in open positions indicates that traders are liquidating positions as prices continue to consolidate.
Currently, the main liquidation level for over-leveraged traders is below $0.00002546. At this level, traders have established long positions worth $1.8 million.
Conversely, $0.00002861 is a higher level where traders have established short positions worth $3.6 million.
When combining these on-chain indicators with technical analysis, traders seem to feel confused. They may also be waiting for a breakout from the consolidation.
As of the time of writing, SHIB is trading close to $0.000026, having dropped 5.20% in price over the past 24 hours.
During the same period, trading volume dropped by 17%, indicating a decrease in trader participation compared to the previous day.
