Shiba Inu Price Recovery and Whale Activity: A Mixed Outlook

Shiba Inu Price Recovery and Whale Activity: A Mixed Outlook

On Thursday, Shiba Inu’s price experienced a notable rebound, recovering from a six-month low triggered by the recent market downturn. While the price is currently trending upwards, the broader trajectory remains bearish. Notably, there has been a surge in whale activity, with new whales acquiring over 220 billion SHIB tokens, valued at approximately $3.11 million.

Whale Accumulation Amid Bearish Sentiment

Despite the overall bearish outlook, Shiba Inu whales have become increasingly active. The whale transaction count metric, which tracks individual SHIB transfers exceeding $100,000, has shown a significant uptick in activity. According to data from IntoTheBlock, the number of large transactions involving SHIB has risen from August 7 to August 8, indicating growing investor interest—a bullish sign for the Shiba Inu price.

Further supporting this trend, Arkham Intelligence has identified a new smart whale, labeled as “0x4B5C,” which has purchased 220.34 billion SHIB worth $3.11 million from Coinbase within the past 48 hours. This activity has increased the percentage of long-term SHIB holders, who are typically whales, to 78%, boosting confidence among non-holders.

Additionally, the Shiba Inu open interest (OI) has increased by 9.2% over the last 24 hours, signaling a fresh influx of capital into the meme coin. However, the cumulative volume delta (CVD) for SHIB has dropped to -204B, indicating that selling pressure currently outweighs buying interest.

The rising OI coupled with the downward CVD suggests that short positions may be increasing as the SHIB price nears a potential resistance zone, which is generally bearish for the token’s price outlook.

Will Shiba Inu Break Out of Its Downtrend?

Shiba Inu’s price remains entrenched in a broader downtrend, as highlighted by its position within a falling channel. The token is currently trading below both its 50-day ($0.00001557) and 200-day exponential moving averages (EMAs) ($0.00001867), underscoring the ongoing bearish trend. However, a short-term upward correction is in progress as SHIB attempts to break out of this descending channel.

The price is encountering resistance at the 50-day EMA, near the 200-day EMA, and within the $0.00001800 to $0.00001900 range. On the downside, SHIB finds support at the lower boundary of the falling channel around $0.00001000 and near the historical support level of $0.00000800.

Recent price action shows a bullish momentum, with the emergence of larger green candles. However, the overall trend remains downward, suggesting that this upward movement could be a temporary pullback before the downtrend resumes.

The Relative Strength Index (RSI) currently stands at 45.60, indicating a neutral to bearish position, edging toward oversold territory. While there is potential for upward movement, the momentum appears weak. The Chaikin Money Flow (CMF) is slightly negative at -0.12, reflecting a minor outflow of capital, consistent with the prevailing bearish sentiment.

Shiba Inu Price Outlook

If Shiba Inu manages to rise above the 200-day EMA, it could signal a shift in market strength, potentially invalidating the bearish outlook. In this scenario, the SHIB price could surge toward the next resistance levels around $0.00002300 and $0.00002800.