Shiba Inu (SHIB) has experienced a 10% recovery rally in recent weeks, driven in part by increased whale activity and the launch of the Shiba Eternity game on the Shibarium network. However, despite this positive movement, SHIB remains stuck in a tight price range between the 61.8% and 78.6% Fibonacci retracement levels.
Whale Activity and Price Recovery
Large transactions, or “whale” activity, have played a significant role in SHIB’s recent price recovery. According to IntoTheBlock data, whales have been making an average of 50 daily large transactions worth over $20 million per day during this period. This suggests that their buying pressure has contributed to the upward movement.
Technical Analysis and Short-Term Outlook
From a technical perspective, SHIB’s price action has been constrained within a short-term range. While the recent recovery has reached the range-high at the 61.8% Fibonacci level, there is a risk of a sell-off if the price fails to break above this resistance.
Indicators such as the Relative Strength Index (RSI) and Chaikin Money Flow (CMF) suggest that demand and buying pressure have increased. However, the level of demand interest in SHIB is not yet above average, which could make it challenging to overcome the resistance at the 61.8% level.
If Bitcoin’s price remains stable or declines, SHIB may follow suit, potentially extending the sideways trading range. Therefore, the short-term range highs and lows remain key levels to watch for SHIB in the near future.
On-Chain Analysis and Sentiment
On-chain analysis provides additional insights into SHIB’s price dynamics. The recent price plunge in early August was accompanied by a sharp accumulation spree, as indicated by the increase in Supply Outside of Exchanges. At the same time, the supply of SHIB on exchanges hit record lows, which is typically considered a bullish signal.
However, the Weighted Sentiment for SHIB has turned negative, suggesting that speculators are not expecting further upside in the short term. If this sentiment persists, the sideways trading structure may continue.
Conclusion
While SHIB has experienced a short-term recovery, its price remains constrained within a tight range. Whale activity has been a driving force behind the rally, but overcoming the resistance at the 61.8% Fibonacci level could prove challenging. Technical indicators and on-chain analysis suggest that the sideways trading pattern may persist in the near future.