Key Insights:
- Shiba Inu price fell 17%, triggering major whale accumulation near the $0.00001406 level.
- Derivatives data shows long/short ratios favor bulls, with rising open interest and trading volume.
- Key liquidity clusters form between $0.00001300 and $0.00001580, signaling critical support and resistance levels.
Shiba Inu price plunged nearly 17% in recent sessions, triggering concern among retail investors. Nevertheless, the steep drop was followed by aggressive whale buying, increased trading volume, and positive derivative data changes. Technical signs now point to a possible reversal.
Shiba Inu Whale Activity and Derivatives Suggest Accumulation Phase
Shiba Inu price dropped by over 15%, falling from $0.00001598 to a low of $0.00001299. However, according to Gustavo, whale investors acted promptly, snapping up about 4.66 trillion SHIB as the price fell.
During the correction, trading volume ballooned to 4.33 trillion tokens, far outpacing past historical averages. CoinGlass figures corroborate this, indicating a 3.09% increase in open interest, elevating the total OI to $236.56 million.
Meanwhile, the long/short ratio remains bullish on the main exchanges. Binance has a 24-hour long-to-short ratio of 1.1272, and OKX has a higher ratio of 2.38. The combined figures suggest a rise in the level of confidence among the leading accounts of an imminent recovery.
Moreover, 24-hour liquidation statistics show that a total of 37.85K liquidated, of which 27.76K are shorts only. Such a bias puts bulls at an advantage and shows the persistent short squeezes in key support levels.
Shiba Inu Price Chart Reveals Critical Zones and Momentum Clues
On the 4-hour chart, price action shows Shiba Inu has formed a double-bottom pattern near $0.00001300, a strong historical support. The price then recovered to $0.00001427, but the momentum remains within a tight consolidation zone.
The chart likewise reveals a pronounced double-top resistance centered at $0.00001580. A breakout confirmation above this level could potentially push Shiba Inu price toward the $0.000020 mark.
Since July 11, price action has been tracing out an expanding triangle, with its high of $0.00001384 on July 11 and its low of $0.00001282 on July 15.
MACD indicators reinforce the notion that bearish momentum is weakening. The MACD line has surged past the signal line, while the histogram bars have turned green. It signals nascent bullish momentum.
The Alligator indicator signals compression as its moving averages converge. At such times, the market typically gears up for a decisive price move.
Regarding liquidity, the SHIB liquidation map of CoinGlass indicates that the long liquidation clusters are dense at the price above 0.00001480 and shorts below 0.00001360.
The current Shiba Inu price lies exactly at the midpoint of these zones, indicating potential for volatility in either direction.
Funding Rates, Open Interest, and Shibarium Developments Add Momentum
According to CoinGlass’s OI-weighted funding rate chart, Shiba Inu’s rates have remained mostly positive since mid-July. Positive funding rates typically signal that long positions outweigh shorts and typically coincide with an upward price bias.
The funding rate has been in the 0.01-0.03% range in the last couple of weeks, indicating that leveraged traders are becoming more bullish. Nevertheless, persistent funding-rate spikes and minimal price action can sometimes be an indication of an imminent sharp correction.
Meanwhile, the developers are still improving Shibarium, the Layer 2 blockchain of Shiba Inu. The platform aims to speed up transaction processing, lower fees, and expand its use. Shibarium is running on Ethereum on a Proof-of-Participation consensus, making it more user-friendly and scalable.
Owing to its low token price, retail interest in SHIB continues to stay elevated. Nonetheless, institutional participation continues to be minimal, and the prospect of a SHIB ETF still seems far off.
Analysts have stayed neutral, noting that any Shiba Inu price rebound hinges on macroeconomic conditions, the ecosystem’s utility, and prevailing social sentiment.
The post Shiba Inu Price Signals Reversal as Whales Bet Big on Double Bottom Setup appeared first on The Market Periodical.
