Shiba Inu (SHIB), the popular memecoin, has experienced a notable recovery rally this week, driven in part by increased whale activity and the recent launch of its Shiba Eternity game on the Shibarium network. However, the rally has encountered resistance at the 61.8% Fibonacci retracement level, raising questions about its sustainability.
Since the massive dump on August 5th, SHIB has been trading within a sideways range between the 61.8% ($0.000014) and 78.6% ($0.000012) Fibonacci levels. The recent recovery has pushed the price to the short-term range high at $0.000014, which could potentially trigger another sell-off similar to past instances.
Despite the resistance, there have been positive indicators suggesting growing demand for SHIB. The Relative Strength Index (RSI) and Chaikin Money Flow (CMF) have been rising, indicating increasing buying pressure. However, demand interest has not yet reached above average levels, making it challenging to break through the $0.000014 resistance.
If Bitcoin’s price consolidates below $61,000, SHIB may follow suit, potentially extending the sideways range. Therefore, the short-term range highs and lows remain crucial levels to watch for SHIB in the near future.
Another factor to consider is the decline in SHIB’s exchange balance. The early August plunge was accompanied by a significant accumulation spree, as evidenced by the increase in Supply Outside of Exchanges. Simultaneously, the supply of SHIB on exchanges reached record lows, which is typically seen as a bullish signal.
Also Read: Join The Shiba Inu Gaming Revolution – Shibarium’s Shiba Eternity Now In Closed Beta
However, SHIB’s Weighted Sentiment has turned negative, suggesting that speculators may not anticipate further upside in the short term. If this sentiment persists, the current sideways structure could continue.
To gain a better understanding of SHIB’s future price movement, tracking whale activity can provide valuable insights. According to IntoTheBlock data, the recent weekly recovery was partially driven by large transactions, with whales making an average of 50 daily large transactions worth over $20 million per day. This indicates that whale action has played a significant role in the rally.
In conclusion, Shiba Inu has experienced a recovery rally fueled by whale activity and the launch of its new game. However, the rally has encountered resistance at the 61.8% Fibonacci retracement level. The future direction of SHIB will depend on factors such as Bitcoin’s price, overall market sentiment, and continued whale interest.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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