Despite a recent 10% rally, Shiba Inu (SHIB) remains trapped within a tight price range. The dog-themed memecoin’s recovery has been fueled by whale activity and the launch of its Shiba Eternity game on the Shibarium network. However, the short-term supply at the 61.8% Fibonacci retracement level has capped the upside.
The key question now is whether SHIB bulls can extend the recovery. After a significant dump in early August, SHIB has been trading sideways between the 61.8% ($0.000014) and 78.6% ($0.000012) Fibonacci levels. The recent rally has reached the short-term range-high at $0.000014, which could trigger another sell-off as seen in the past.
While demand and buying pressure have increased, as indicated by rising RSI and CMF, the overall demand interest in SHIB remains below average levels. This suggests that breaking through the $0.000014 resistance could be challenging. If Bitcoin’s price consolidation below $61,000 extends, SHIB may follow suit, keeping the short-term range highs and lows relevant.
Another factor to consider is the decline in SHIB’s exchange balance. The early August plunge was marked by a sharp accumulation spree, as indicated by the uptick in Supply Outside of Exchanges. At the same time, SHIB’s supply on exchanges hit record lows, typically a bullish signal. However, SHIB’s negative Weighted Sentiment suggests that speculators anticipate no further upside in the short term.
To gain insights into SHIB’s next price move, tracking whale action is crucial. Large transactions have played a significant role in the recent recovery, with whales making an average of 50 daily large transactions worth over $20 million per day.
In conclusion, while SHIB’s recent recovery is promising, several factors could limit its upside in the short term. The tight price range, average demand interest, and potential impact of Bitcoin’s price consolidation are key considerations. However, the ongoing whale activity and the potential for a broader market recovery could provide opportunities for SHIB to break out of its current range.
