- Shiba Inu showed bearish trends on its one-day chart amid rising sell-side pressure.
- Whale activity has increased after large transaction volumes increased three-fold from 1.07 trillion to 3.75 trillion.
As a seasoned crypto investor with a knack for deciphering market trends, I find myself observing Shiba Inu [SHIB] with a mix of intrigue and caution. The bearish performance over the past month has been disheartening, to say the least, but the recent rise in whale activity gives me a glimmer of hope.
This month, Shiba Inu (SHIB) has shown a slow pace following a 11% decline over the past 30 days. Currently, the popular meme coin, ranked second by market cap, is being traded for approximately $0.0000223 at the present moment.
As an analyst, I’ve observed that the persistent bearish trend in SHIB might be due to heightened selling pressure coupled with a scarcity of buying interest. On the daily chart, it appears sellers have maintained dominance, as evidenced by the Relative Strength Index (RSI) plummeting, creating lower troughs.
SHIB’s RSI stood at 40, which was close to oversold regions.
If the selling pressure runs out, this situation might temporarily reverse due to a correction. However, if new buyers don’t enter the market, the price may stabilize and potentially remain within its current lower price range.
In simpler terms, the Moving Average Convergence Divergence (MACD) graph suggested a strong selling or bearish trend, as both the MACD line and the bars in the histogram were positioned below the zero mark.
Keep an eye on uncaptured liquidity at approximately 0.0000185 for traders. If Shiba Inu (SHIB) persists in its consolidation because of weak trends, there’s a possibility that the price may return to this price point again.
If the ongoing drop in SHIB’s price entices buyers, there’s a possibility that it could experience a bullish turnaround, potentially pushing the price towards the 0.5 Fibonacci level ($0.0000259). This level was historically a robust support.
Flipping this level could precede an uptrend.
SHIB whale activity is on the rise
Shiba Inu whale activity is on the rise again, according to AMBCrypto’s look at IntoTheBlock.
Large Shiba Inu (SHIB) transactions worth more than $100,000 have seen a significant surge over the past day, with volumes rising from 1.07 trillion to an impressive 3.75 trillion. This substantial increase equates to a tripling of transaction volume within just 24 hours.
As I observed, the level of whale activity in SHIB has indeed increased recently. However, this activity remains relatively low when compared to the weekly average. This observation implies that while whales are starting to engage more, a greater degree of involvement from other participants is required to fuel the market dynamics and potentially drive price movements.
Bearish trends in the derivatives market
According to Coinglass, Shiba Inu’s behavior in the derivatives market was suggesting a downward trend. There’s been a substantial decrease in speculative actions due to a more than 30% fall in the volume of derivative trades.
On the other hand, Open Interest has plunged to a record low of $54M.
The ratio of long to short positions for Shiba Inus has decreased to 0.926, indicating that there are more short sellers than long buyers in the market. Furthermore, a greater number of long positions being liquidated compared to shorts suggests a growing pessimism or bearish sentiment.
A surge in Open Interest is needed to support a bullish recovery and a breakout from consolidation.
If the ongoing patterns in the derivatives market continue, Shiba Inu (SHIB) might find itself confined within a price range.
Will SHIB rally in 2025?
As a forward-thinking crypto investor, I’m keeping an eye on potential developments that could influence the crypto market in early 2025. One intriguing possibility is the inauguration event of the newly elected U.S. President, Donald Trump. The buzz and economic stimulus surrounding this high-profile occasion might subtly contribute to a slight upward trend in the broader crypto market.
This increase might fuel a rise in SHIB’s value, potentially propelling it to peak prices not seen in several months, surpassing the 0.0000334 mark.
If the market has already factored in the inauguration event, it might lead to a more pessimistic or downward trend for the meme coin instead.
Read Shiba Inu’s [SHIB] Price Prediction 2025–2026
2024 saw a substantial surge in the memecoin industry as well, with the aggregate market value climbing from an initial $22 billion to a current $97 billion, as reported by CoinMarketCap.
If this growth is seen again in 2025, it could bode well for SHIB’s price.
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2024-12-26 15:36