Amid the current bullish trend, Shiba Inu [SHIB], the second-largest meme cryptocurrency, has faced challenges since November 12th following a significant breakout from the downward trendline.
Nevertheless, data from a blockchain analysis company indicates that large investors and institutional players are displaying a keen interest in the meme token, resulting in substantial accumulation.
Surge in Shiba Inu Whales’ Holdings
According to insights from IntoTheBlock, a blockchain analysis platform, whales and institutional investors holding SHIB tokens valued between $1 million to $10 million have boosted their holdings by 425% over the past month. This surge suggests a notable institutional interest during this period of consolidation.
This uptrend implies that significant players are gearing up for a potential breakout, indicating potential buying opportunities and a forthcoming upswing in the market.
SHIB Technical Assessment and Crucial Levels
As per expert technical analysis, SHIB is presently consolidating within a narrow range close to a sturdy resistance level at $0.000029. Consolidation near a resistance level often serves as a potential signal for buying, as it signifies a phase where traders and investors accumulate tokens.
Given the recent price movements, if SHIB surpasses this zone and closes a daily candle above the $0.0000295 level, there exists a significant possibility for the meme coin to surge by 50%, reaching $0.000044 in the near future.
Currently, SHIB is exhibiting an upward trajectory, trading above the 200 Exponential Moving Average (EMA) on the daily charts. Concurrently, the Relative Strength Index (RSI) indicates a potential upward momentum in the forthcoming days, with its value still below the overbought region.
Divergent Views from On-Chain Metrics
Despite the optimistic technical analysis, the on-chain metrics for SHIB reveal conflicting sentiments among traders. According to Coinglass, the cryptocurrency’s open interest (OI) has decreased by 10.25% over the last 24 hours.
This decline in OI implies that traders are closing out their positions while the price consolidates.
Presently, significant liquidation levels where traders are excessively leveraged are noted at $0.00002546 on the downside, with long positions amounting to $1.8 million. On the contrary, at $0.00002861 on the upside, traders have accumulated $3.6 million worth of short positions.
Upon combining these on-chain metrics with the technical analysis, it is evident that traders are uncertain and possibly awaiting a breakout from the consolidation phase.
At the time of reporting, SHIB was trading near the $0.000026 mark and had experienced a decline of 5.20% over the past 24 hours.
During the same interval, its trading volume declined by 17%, indicating reduced trader engagement compared to the previous day.