In the ongoing bull market, Shiba Inu (SHIB), the second largest meme coin, has struggled to perform since breaking the descending trend line on November 12.
However, data from on-chain analytics companies shows that a large number of whales and institutional investors have shown strong interest in Shiba Inu, with significant buying and accumulation activities recently. This inflow of funds not only reflects ongoing market attention to meme coins but may also lay the foundation for SHIB's next rebound.
Shiba Whale Increases Holdings
On-chain analytics company IntoTheBlock reports that whales and institutions holding SHIB tokens valued between $1 million and $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 major players are preparing for a potential breakout. Additionally, it also indicates the possibility of buying opportunities and upward trends 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.
According to recent price movements, if SHIB breaks the $0.0000295 area and closes on the daily chart, this meme coin could see a 50% increase in the coming days, targeting a price of $0.000044.
Currently, SHIB is in an uptrend, with its trading price above the 200-day Exponential Moving Average (EMA), indicating strong upward momentum. At the same time, the Relative Strength Index (RSI) shows that SHIB still has upward momentum and has not yet entered the overbought zone, further supporting its potential for short-term gains.
Mixed sentiment in on-chain indicators
Although technical analysis still shows bullish signals, the on-chain indicators for Shiba Inu (SHIB) reveal a divergence in trader sentiment. According to Coinglass data, the open interest (OI) of this meme coin has decreased by 10.25% in the past 24 hours, indicating that many traders are choosing to liquidate positions to mitigate risk.
The reduction in open positions suggests that some traders are beginning to reduce leverage risk during the price consolidation period. Currently, the major liquidation level for over-leveraged bulls is below $0.00002546, where long positions worth $1.8 million have been established. Conversely, the main concentration point for short positions is around $0.00002861, with a total value of up to $3.6 million. This distribution of long and short forces could bring greater volatility to SHIB in the upcoming trades.
When combining these on-chain indicators with technical analysis, traders seem to be confused. They may also be waiting for a breakout from the consolidation.
As of the time of writing, SHIB's trading price is close to $0.000026, having dropped 5.20% in the past 24 hours.
During the same period, trading volume decreased by 17%, indicating a decline in trader participation compared to the previous day.
