Shiba Inu (SHIB) saw a price recovery on Thursday after reaching a six-month low due to a recent market downturn. Despite a current upward movement, the overall trend remains bearish. For SHIB to maintain a sustainable upward trajectory, it must breach key resistance levels, necessitating increased trading volume.
Whales Show Increased Interest
The growing interest from Shiba Inu whales has caught attention recently. The whale transactions metric, which tracks SHIB transfers exceeding $100,000, has shown an uptick in large transactions, according to data from IntoTheBlock. This increase, particularly between August 7-8, signifies heightened investor interest, suggesting a positive price outlook for Shiba Inu.
Arkham Intelligence reports that a new whale starting with 0x4B5C purchased 220.34 billion SHIB via Coinbase in the last 48 hours, investing $3.11 million. This has increased the number of long-term SHIB holders and bolstered market confidence, although the overall trend remains bearish.
Market Dynamics
In the derivatives market, SHIB’s Open Interest (OI) rose by 9.2% in the past 24 hours, reflecting capital inflow into the memecoin. However, the cumulative volume delta (CVD) dropped to -204B, indicating higher selling activity. This suggests that short positions are being opened as the price nears resistance, hinting at a potential continuation of the downtrend.
Investor Takeaways
Key insights from recent market activity:
- Significant whale purchases indicate rising long-term investment interest.
- Increased Open Interest points to growing capital inflows despite bearish trends.
- Technical indicators suggest the price remains under pressure and may face a pullback.
Shiba Inu’s price remains in a general downtrend, currently below the 50-day and 200-day Exponential Moving Averages (EMAs), reinforcing the bearish sentiment. A short-term upward correction is in play, with attempts to break out of the descending channel. If SHIB climbs above the 200-day EMA, it could signal renewed strength and negate the bearish outlook. However, technical indicators like RSI and CMF warn of potential price pressure and a possible pullback following the recent rise.