Shiba Inu (SHIB) Price Rebounded but the Overall Trajectory Is Downward as Whale Activity Increases

Shiba Inu still has some way to go before it can turn bullish. Two major resistance levels appear overhead. To surpass them, SHIB will require much more volume.

Shiba Inu price rose on Thursday, setting six-month lows after the recent market crash. SHIB price is trending upwards but the general trend is downwards. Whale activity is increasing, with new whales snatching 220 billion SHIB worth $3.11 million. 

There is still a long way to go for Shiba Inu to rise. Two major resistance levels appear to be at the top. To overcome these, SHIB will need much more volume.

Surge in SHIB Whale Activity Shows Accumulation

Despite the bearish trend mentioned above, Shiba Inu whales remain active as the Whal process continues to show metric. This indicator tracks individual SHIB transfers worth $100,000 or more. Looking at IntoTheBlock's large transaction count metric, whale activity has been observed around Shiba Inu recently.

From August 7 to August 8, the number of large transactions involving SHIB increased, indicating an increase in investor interest, which in turn is bullish for the Shiba Inu price.

Additionally, Arkham Intelligence records a new smart whale that has purchased billions of SHIBs in the last 48 hours. The whale identified as “0x4B5C” purchased 220.34 billion SHIB from Coinbase, worth $3.11 million. As a result, SHIB long-term holders, who are often whales, rose to 78%, inspiring confidence among non-owners.

The increase in SHIB open interest (OI) to 9.2% in the last 24 hours indicates that there is a capital inflow into meme money.  

Also, SHIB cumulative volume delta (CVD) dropped to -204B, indicating more people are selling than buying.

Increasing OI and price may indicate opening of short positions as SHIB price approaches a potential resistance zone. Additionally, increasing OI and decreasing CVD indicate that short positions are being opened, which is a bearish signal for SHIB price.

Will Shiba Inu Price Break?

SHIB price is in an overall downtrend as seen from the falling channel (marked in orange). The price is currently trading below both the 50-day ($0.00001557) and 200-day exponential moving averages (EMA) ($0.00001867), reinforcing the bearish trend. However, a short-term upward correction is occurring as the price attempts to break out of the falling channel.

Shiba Inu price action is facing resistance at the 50-day EMA, near the 200-day EMA and between $0.00001800 and $0.00001900 (highlighted in orange on the chart). On the other hand, Shiba Inu price is gaining support at the lower boundary of the descending channel around $0.00001000 and near the $0.00000800 level, a historical support zone.

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