Despite a 10% recovery move, SHIB was still stuck in a price range. What’s next?
- SHIB saw a 10% recovery but was still stuck in a tight price range. Whales were highly responsible for the recent recovery.
Shiba Inu [SHIB] has seen remarkable whale interest during this week’s recovery rally. The rally, which started on the 19th of August, reaching a 10% gain during the early New York trading session on the 22nd of August.
The recovery also coincided with a recent Shiba Eternity game launched on its Shibarium network. However, the recovery hit a short-term supply at the 61.8% Fibonacci retracement level.
Can SHIB bulls extend the recovery?
Source: SHIB/USDT, TradingView
After a massive dump on the 5th of August, SHIB has traded sideways between 61.8% ($0.000014) and 78.6% ($0.000012) Fib levels.
The recent recovery has reached the short-term range-high at $0.000014, which could trigger another sell-off as seen in the past.
Meanwhile, demand and buying pressure surged, as indicated by rising RSI (Relative Strength Index) and CMF (Chaikin Money Flow).
However, demand interest in the dog-themed memecoin was not above the average levels at the time of writing, which could make it challenging to cross the resistance at $0.000014.
So, if Bitcoin’s [BTC] price consolidation below $61K extends, SHIB could follow suit. Ergo, the short-term range highs and lows could remain key SHIB levels to watch in the short term.
SHIB’s exchange balance declines
Source: Santiment
The early August plunge was marked by a sharp accumulation spree, as indicated by the uptick in Supply Outside of Exchanges (blue) for SHIB.
At the same time, SHIB’s supply on exchanges (orange) hit record lows, a typical bullish signal in theory.
However, SHIB’s Weighted Sentiment has turned negative at the time of writing. This suggested that speculators expected no further upside for the meme coin in the short term.
If so, the current sideways structure could extend.
Tracking whale action could offer needed insights into the next SHIB’s price move. According to IntoTheBlock data, the recent weekly recovery was partly initiated by large transactions.
The whales made an average of 50 daily large transactions worth over $20 million per day. In short, the recovery was likely driven by whale action.
Source: IntoTheBlock
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
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