The memecoin market has been quiet lately due to some economic news and Bitcoin’s bearish trend below $60,000. As Bitcoin still struggles to attract buyers, the popular memecoin Shiba Inu has been stable around $0.000014. As a result, interest from large investors has declined, which could make it more difficult for Shiba Inu to break out of its current range.
SHIB Whales Lose Confidence
Although Shiba Inu has been consolidating over the past few days, both open interest and trading volume have seen a slight increase. Coinglass data shows that SHIB’s trading volume surged 60.5%, and open interest grew more than 7.4% to $27.8 million.
Despite this, whales’ dominance over SHIB’s price continues to decline. IntoTheBlock data shows that Shiba Inu’s large holder net flows are experiencing a huge negative shift. This indicator represents changes in whale positions, with peaks indicating large players are accumulating, while declines indicate a reduction or selling of holdings.
This could indicate that large investors are reducing their positions or possibly selling. Profit-taking and market sentiment could both affect this trend. In addition, Shiba Inu has a huge trading volume, which has dropped significantly in recent weeks.
The indicator has fallen from a peak of $119 million to just $24 million, which could weaken the buying pressure SHIB needs to start a recovery rally. However, there is still hope for a comeback as large holders are taking advantage of the current market downturn.
Transactions of more than $100,000 have risen to $143 million in the past seven days, ITB data shows. While this was lower than the volume seen during the strong bull market, it was an increase of nearly 60% compared to the previous week. This significant rise suggests that large holders are starting to take advantage of lower prices and buy on the dip.
What will be the next trend of SHIB price?
Shiba Inu’s recovery encountered resistance at the 23.6% Fib channel (around $0.000014). However, the bulls strongly defended a break below the EMA20 trendline as SHIB aims to end its bearish consolidation. As of the time of writing, SHIB is priced at $0.000014, having surged by more than 4.1% in the past 24 hours.
A break above the 20-day EMA means that the bulls are trying to establish a new resistance level, increasing the possibility of a breakout above the 50-day simple moving average ($0.0000155). This could sink the SHIB/USDT pair to $0.000018.
On the other hand, if the $0.0000123 support breaks, it will suggest that the bears are maintaining the selling pressure. The pair can drop to $0.0000108 and the next key support is at $0.000009.
The RSI levels are currently surging and approaching the overbought region of 67. This could result in an immediate rejection and a bearish pullback on the SHIB price chart as the price struggles around $0.000014.
