-
Shiba Inu’s recent performances highlight a turbulent landscape as whale activities surge, raising questions about market recovery amid bearish trends.
-
Despite a notable uptick in whale transactions, the overall selling pressure intensifies, suggesting a need for broader market participation to drive up prices.
-
“While whales are becoming active, more participation is needed to drive the price action,” a source from COINOTAG noted.
Shiba Inu experiences increased whale activity but struggles with bearish trends; the need for broader market participation is crucial for recovery.
SHIB Struggles with Bearish Market Conditions
Shiba Inu [SHIB] has faced significant challenges lately, particularly as the token has experienced an 11% price drop over the last month, currently trading at $0.0000223. This bearish trend is exacerbated by rising sell-side pressure, resulting in a low demand environment.
On the one-day chart, the Relative Strength Index (RSI) for SHIB has fallen to 40, indicating potential oversold conditions. This drop suggests that if selling pressure exhausts itself, a short-term price correction may occur. However, without new demand entering the market, consolidation at current levels seems likely.
Source: TradingView
The Moving Average Convergence Divergence (MACD) indicator further confirms the bearish sentiment, as both the MACD line and histogram are firmly positioned in negative territory. Traders should be vigilant regarding uncollected liquidity at around $0.0000185, as consolidation could lead the price to revisit this level. In contrast, should buying interest return, SHIB might target the 0.5 Fibonacci level at approximately $0.0000259, a previous strong support zone.
Surge in Whale Activity Amid Low Retail Engagement
Analysis from COINOTAG, referencing data from IntoTheBlock, showcases a significant increase in whale transactions involving Shiba Inu. The volume of transactions exceeding $100,000 surged from 1.07 trillion to 3.75 trillion, reflecting a three-fold increase. Yet, despite this surge, whale activity remains at lower ranges compared to weekly averages, signaling insufficient retail participation needed to amplify price movements.
Source: IntoTheBlock
Derivatives Market Indicates Weak Sentiment
The derivatives market also reflects a bearish outlook for Shiba Inu, with recent data from Coinglass revealing a more than 30% drop in trading volumes. Open Interest has reached a record low of $54 million, emphasizing dwindling interest in SHIB futures.
Source: Coinglass
SHIB’s Long/Short Ratio has moved down to 0.926, denoting that short positions currently outnumber long bets. This imbalance, alongside a high number of long liquidations compared to shorts, further illustrates prevailing bearish trends. For SHIB to mount a significant recovery, a surge in Open Interest and volume will be necessary to break free from this range-bound behavior.
Market Outlook for SHIB in 2025
The broader cryptocurrency market may see a slight uptick as we approach early 2025, potentially driven by economic events such as the inauguration of US President-elect Donald Trump. If this momentum translates into market activity, Shiba Inu could benefit and reach multi-month highs above $0.0000334.
Looking ahead, the memecoin market demonstrated substantial growth in 2024. If a similar pattern unfolds in 2025, it could substantially benefit SHIB’s price trajectory. Conversely, should the crypto community have already factored in these potential gains, it might lead to further bearish pressure.
To stay informed on Shiba Inu’s price predictions for 2025-2026, consider following updates closely.
Conclusion
In summary, while there is a notable uptick in whale activity around Shiba Inu, persistent bearish trends highlight a lack of broader market engagement and interest. As we look ahead, cautious monitoring of whale volumes, derivative market trends, and external economic factors will be key in shaping the future of SHIB.
