Shiba Inu is making headlines again as whale activity appears to be revving up. This could potentially have significant implications for SHIB and its market behavior.
Recently, large transaction volumes for Shiba Inu saw an astonishing three-fold increase, jumping from 1.07 trillion to 3.75 trillion. This heightened activity comes at a time when SHIB has been facing a tough month, experiencing an 11% decline in the last thirty days. Currently, this memecoin trades at $0.0000223.
The bearish trend can be linked to rising selling activity amidst a notable absence of demand. Just look at the Relative Strength Index (RSI), which has been trending downwards, indicating that sellers are firmly in control. As of now, SHIB’s RSI sits at 40, dipping close to the oversold territory.
Should the selling pressure ease, we might witness a short-term price correction. However, if fresh demand fails to materialize, we could see SHIB consolidating at these lower price ranges. The Moving Average Convergence Divergence (MACD) also painted a gloomy picture, reinforcing the bearish sentiment with both the MACD line and histogram bars languishing in negative territory.
Traders should keep a vigilant eye on uncollected liquidity around $0.0000185. Should SHIB continue its consolidation without a robust upward trend, it may very well revisit this critical price point. On the flip side, should buyers step in during this dip, we could witness a bullish reversal, with targets eyeing the 0.5 Fibonacci level at $0.0000259, a previous strong support area. Successfully reclaiming this mark could signal a potential uptrend for SHIB.
Diving deeper into the whale activity, reports highlight a renewed interest among Shiba Inu whales. As noted by AMBCrypto’s analysis of IntoTheBlock, the substantial jump in large transactions exceeding $100,000 indicates that, although whale activity is increasing, it remains lower than the typical weekly averages. This suggests that stronger participation from these large holders is crucial for driving significant price movements.
Turning our attention to the derivatives market, bearish signs continue to emerge, as per Coinglass. Speculative activities have taken a hit with a staggering 30% drop in derivative trading volumes, alongside a notable decline in Open Interest which has plummeted to a record low of $54 million. The Long/Short Ratio has also dipped to 0.926, showcasing a predominance of short traders over long ones, a clear indication of the prevailing bearish sentiment.
To trigger a bullish recovery and exit from consolidation, we need to see a surge in Open Interest. Should these current trends continue, SHIB might find itself caught in a stagnant price zone.
Looking ahead, many are curious whether SHIB might rally in 2025. The broader crypto market could potentially see slight gains following the upcoming inauguration of US President-elect Donald Trump, which may influence SHIB positively, pushing its price toward multi-month highs above $0.0000334. However, if the market has preemptively factored in this event, we could instead face further bearish trends.
The memecoin sector has already showcased considerable growth in 2024, with market capitalization skyrocketing from $22 billion at the year’s start to $97 billion currently, according to CoinMarketCap. If we witness a similar growth trajectory in 2025, SHIB’s price may benefit significantly from this bullish atmosphere.
