Shiba Inu‘s (SHIB) price rebounded on Thursday after hitting a six-month low following the recent market crash. Although the price is currently in an uptrend, the overall trend remains downward. For SHIB’s price to achieve a sustainable rise, it needs to surpass significant resistance levels, which requires more volume.
Whales Accumulate SHIB
Recently, the increasing interest of Shiba Inu whales has been noteworthy. The whale transactions metric tracks SHIB transfers over $100,000, and data from IntoTheBlock reveals a rise in large transactions. The increase in large transactions between August 7-8 indicates growing investor interest, signaling a positive outlook for Shiba Inu’s price.
According to data provided by Arkham Intelligence, a new whale starting with 0x4B5C… purchased 220.34 billion SHIB through the Coinbase exchange in the last 48 hours, making a total investment of $3.11 million. This has led to an increase in the number of long-term SHIB investors and boosted market confidence.
On the derivatives side, SHIB’s Open Interest (OI) increased by 9.2% in the last 24 hours, indicating capital inflow into the memecoin. However, the altcoin‘s cumulative volume delta (CVD) fell to -204B, revealing more selling activity. This suggests that short positions are being opened as the price approaches the resistance zone, indicating a potential continuation of the downward trend.
Possible Scenarios for Shiba Inu
Shiba Inu’s price continues to remain in a general downtrend. The price is currently below the 50-day and 200-day Exponential Moving Averages (EMAs), reinforcing the bearish trend. A short-term upward correction is currently underway, and the price is attempting to break out of the descending channel.
If Shiba Inu rises above the 200-day EMA, it is expected to show renewed strength and invalidate the bearish scenario. In this case, SHIB’s price could rapidly rise towards the next resistance levels between $0.00002300 and $0.00002800. However, technical indicators like RSI and CMF suggest that the price is still under pressure, and the recent rise could be followed by a pullback.
