Shiba Inu (SHIB), a prominent player in the meme coin category, has shown resilience and stability in a market prone to rapid shifts. Recently, SHIB has managed to sustain its price above the crucial level of $0.000014. This stability comes at a time when large transaction volumes involving whales suggest a brewing optimism among major investors. The meme-based cryptocurrency recently recorded a price increment to $0.00001437, marking a 2.05% rise within the past day. This performance is indicative of a broader trend where SHIB continues to navigate the choppy waters of market sentiment and investor reactions, often characterized by rapid shifts and speculative trades.
Despite a notable 19.43% drop in trading volume, amounting to approximately $156.28 million, Shiba Inu’s market cap has experienced a simultaneous increase of 2.05%, solidifying its position with a robust valuation of $8.46 billion. This dichotomy between trading volume and market cap highlights a potential consolidation phase where investors might be holding onto their positions in anticipation of future price movements.
Technical Indicators Reflect Consolidation Phase
Shiba Inu appears to be stabilizing after a period of decline that began in mid-July. The RSI on the daily chart is around 40.81, which is close to the neutral zone but still leans slightly toward the bearish territory. This position indicates that while the selling pressure has eased, there isn’t a strong buying momentum yet to push the prices significantly higher.
The 4-hour chart for Shiba Inu (SHIB) presents an intriguing narrative of consolidation within a narrowly defined trading range. The price of SHIB has been hovering around the $0.00001437 mark, showing minor fluctuations that reflect a cautious market sentiment. The Moving Average (MA) Ribbon on the 4-hour chart indicates a tight cluster, suggesting that the short-term MAs are closely aligned with longer-term averages, highlighting a lack of strong momentum in either direction.
The MACD on the daily chart corroborates this view, showing a convergence of the MACD line towards the signal line, which could potentially lead to a bullish crossover if buying pressure increases. Currently, the MACD histogram is shrinking, suggesting a decrease in bearish momentum and potentially setting the stage for a bullish reversal.
The 4-hour and daily charts suggest that Shiba Inu is in a consolidation phase, with indicators pointing towards a cautious but potentially shifting market sentiment. The key resistance level to watch is around the $0.0000164 mark, which aligns with the 50-day moving average. A sustained break above this level could confirm a bullish reversal and attract more buyers.
Conversely, if SHIB fails to maintain its current support level and falls below $0.000014, it could retest lower supports at around $0.00001368, as indicated by previous lows on the 4-hour chart. Such a move would likely be driven by a broader market sell-off or negative news impacting the sentiment around meme coins like Shiba Inu.
Shiba Inu Whales Takeover
According to recent data from the IntoTheBlock report published, Shiba Inu had over 1 million coins traded worth approximately 16 billion USD during the last day alone. Trading volumes have gone down by 16% but the high number of trades indicates an interest among whales as well as institutional players. The activities of these large holders in the cryptocurrency market can lead to a significant increase in prices if they see this as just another consolidation phase before moving higher.
A strategic hold by the whales may be implied by the decrease in huge transaction volumes since August 5, which reached a peak of 9.02 trillion SHIB. These major market participants are likely waiting for more certain market signals before they take further significant steps. In situations of uncertainty such as these, it is common to observe this sort of pattern where either a breakout or breakdown could happen.
In the future, Shiba Inu will largely depend on whether its current rebound has enough strength to sustain it and cross major moving averages. Buyers could be encouraged to make more purchases if there is a decisive close above $0.0000164 and $0.0000203 thus pushing the price toward $0.000025 and possibly even up to $0.000030.
