Shiba Inu Coin surged 6%. Can the market usher in another frenzy? Can SHIB usher in a breakthrough, or is it trapped by the silence of whales?
As of now, the price of Shiba Inu (SHIB) is $0.00001889, up 6% in 24 hours. However, the trading volume has dropped by 10%, indicating that the market demand for SHIB is somewhat weak.
The reason for the weakening demand may be due to the decline in whale activity. Based on the trading situation in the past 7 days, the buying pressure of whales has weakened. In fact, the current main SHIB trading volume has dropped from 2.65 trillion to 1.80 trillion.
Earlier this week, the recovery of Bitcoin prices filled the crypto market with optimism, and whale trading volume surged. However, whale trading volume has since fallen back, perhaps waiting for an opportunity to increase or reduce holdings.
According to data from exchanges, some SHIB holders seem ready to sell. As of now, the net inflow of exchanges has reached 320 billion tokens, the highest level in more than a week. This inflow is a significant increase from the negative inflow of the previous day. If these tokens are sold off, SHIB’s volatility could increase drastically and the trading price would drop accordingly. However, taking a closer look at the technical indicators, we can see that buyers are still dominating the market.
SHIB Technical Analysis
On the daily chart, Shiba Inu coin has formed a bullish symmetrical triangle, which indicates that the market sentiment is biased towards the upside. Meanwhile, the impressive oscillators are also sending positive signals, showing that the market momentum is shifting from bearish to bullish. The current relative strength index (RSI) is 60, indicating that the bullish momentum is still there. However, the RSI has been less volatile and remains almost flat, which could mean that SHIB is going through a consolidation phase.
If Shiba Inu successfully breaks out of the symmetrical triangle pattern, the price has the potential to rise to the next resistance at the 100% Fibonacci level ($0.00001916). But if the breakout fails, SHIB could retrace to the $0.0000179 support level.
According to Coinglass data, traders holding long positions in SHIB have risen to 51% from 49% the day before. At the same time, short positions have decreased, showing that the sentiment of traders betting on the rise in the market is increasing.
