- Shiba Inu whales are increasing their holdings as the spot price consolidates.
- SHIB price is down, but indicators show a potential upsurge soon.
With another memecoin frenzy on the horizon, large investors, popularly referred to as whales, are scooping large amounts of Shiba Inu (SHIB) tokens. Notably, SHIB has struggled since November 12, following a major breakout from the descending trendline. This trend and whale actions now raise questions on the implications for SHIB’s price trajectory.
Massive Shiba Inu Accumulation
The on-chain analytical platform IntoTheBlock reported a spike in the number of whales holding Shiba Inu. Large investors holding SHIB tokens worth $1 million to $10 million increased their positions by 425% in the past 30 days.
CNF reported that whales acquired 1.67 trillion SHIB from exchanges in just 24 hours last week. The recent whale actions indicate strong institutional interest during the ongoing consolidation phase. This means whales and institutions are getting ready for a possible breakout. It also suggests potential opportunities to accumulate more tokens and an upward rebound in the days ahead.
Technical analysis shows SHIB is currently consolidating in a very narrow range near a strong resistance level of $0.000029. Consolidation around a resistance level is usually interpreted as a potential buy signal, as traders and investors utilize it to accumulate tokens.
As a result, SHIB could soar by 50% to reach $0.000044 in the next few days. However, the memecoin must first break out from the resistance level and close a daily candle above $0.0000295.
Its Relative Strength Index (RSI) currently shows a value below the overbought territory, suggesting potential upside momentum in the coming days. SHIB also shows an uptrend in the daily timeframe, trading above the 200 Exponential Moving Average (EMA).
Moreover, popular crypto analyst Ali Martinez suggests a close above $0.000025 could push SHIB toward $0.000039. According to a CNF report, another analyst, Roaring Kitty, suggests a more optimistic price prediction that SHIB could soar above 200%.
At press time, the SHIB price was $0.00002597, having declined 3.45% in the past 24 hours.
Mixed Sentiments From Traders
Despite the bullish technical analysis and analysts’ forecasts, SHIB’s on-chain indicators show mixed sentiment among traders. Shiba Inu’s Open Interest (OI) is down by 10.25% in the past 24 hours, per CoinGlass data. The decline in OI suggests that traders are liquidating their positions as the price consolidates.
Major liquidation levels where traders are over-leveraged are currently at $0.00002546 on the lower side. At this level, traders have built long positions worth $1.8 million. On the other hand, $0.00002861 is on the upper side, where traders have built $3.6 million worth of short positions.
Traders need clarification when combining these on-chain metrics with the technical analysis. However, they may also be waiting for the breakout from the consolidation to start aggressive buying.
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