Shiba Inu (SHIB) has experienced a notable recovery over the past week, but traders remain cautious, anticipating a potential downturn in its price.
Recent Performance
SHIB has increased by 2% in the last 24 hours, currently trading at $0.0000194. On July 16, the asset briefly hit a one-month high of $0.00002 before correcting to $0.0000187. Shiba Inu's market cap stands at $11.4 billion, ranking it as the 12th-largest cryptocurrency and the second-largest meme coin. Despite the price rise, its daily trading volume has decreased by 27% to around $500 million.
Whale Activity and Market Impact
Data from Santiment reveals a significant increase in whale transactions, defined as those worth at least $100,000. The number of such transactions rose by 121% in the past 24 hours, from 81 to 179. This increase in whale activity, coupled with declining trading volume, suggests that Shiba Inu may face high price volatility due to potential price manipulation by large holders.
Market Sentiment and Open Interest
Santiment's data also shows a drop in SHIB’s total open interest from $59.6 million to $57.1 million over the past day. Additionally, the aggregated funding rates for Shiba Inu have fallen below zero, currently at -0.003%, indicating a bearish sentiment among traders. The dominance of short positions over long positions reflects expectations of a price decline.
Technical Indicators
Shiba Inu’s Relative Strength Index (RSI) is at 61, suggesting the asset is slightly overbought. An RSI of 50 or lower could signal a return to a bullish trend for SHIB. Notably, an upward movement of over 5% could lead to approximately $2.5 million in liquidations.
Conclusion
While Shiba Inu has shown impressive gains recently, the current market dynamics and trader sentiment suggest caution. Increased whale activity and declining trading volume indicate potential volatility ahead. Investors should closely monitor market indicators and whale movements to navigate the potential risks and opportunities in SHIB trading.
Notice:
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