Whale Acitivity Drives SHIB 8% To $0.0000080

Shiba Inu (SHIB), the second most popular meme coin after Dogecoin, has garnered considerable traction in a week that has been marked by a remarkable recovery in the crypto market.

SHIB has risen more than 8% in the past 24 hours and 19% over the last seven days. Its daily trading volume has leaped a massive 46% to $311.16 million over the last seven days. It features among the top 10 trending cryptocurrencies on CoinMarketCap on Thursday.

Trending Coins on CoinMarketCap

At the same time, SHIB has experienced significance increase in on-chain activity particularly with respect to trading volume. Crypto wallet addresses facilitating transactions worth over $50 million in Shiba Inu have been increasing over the last week.

A significant increase in whale activity related to SHIB transactions was also observed during this period. This was particularly regarding those involving sums exceeding $500,000. According to SpotOnChain, a leading blockchain analytics platform, SHIB whales were observed moving a substantial $48.553 million worth of Shiba Inu tokens within a single day.

This activity involved 6.40 trillion SHIB tokens across 15 transactions. Among the participants in these transactions were major cryptocurrency exchanges like Binance and Kucoin. It also included prominent industry players such as Wintermute Trading, Robinhood, BTC Turk, and a few undisclosed addresses.

Shiba Inu Price Readies for a 40% Uplift

After turning away from the $0.00001134 swing high set on Aug. 12, SHIB tumbled more than 40% to sent to seek solace from the $0.00000670 support floor. The price action between Aug. 18 and Oct. 22 was defined by a series on lower highs and lower lows leading to the appearance of a descending parallel channel on the daily chart.

Bulls pushed that price above the channel’s resistance line at $0.00000713 on Monday, confirming a bullish breakout from the technical set formation. Since then, Shiba Inu has continued to scale higher flipping the 50-day Exponential Moving Average (EMA) at $0.00000737 and the 100-day EMA at $0.00000769 back into support.

The token is currently fighting resistance from the $0.00000825 swing high and the 200-day EMA at $0.00000838. A daily candlestick close above this level would see the price rise to collect the supply side liquidity above that with the bulls targeting a return to the $0.00001134 range high. This would represent a 40% increase from the current levels.

SHIB/USD Daily Chart

This positive narrative for SHIB was supported by the upward movement of the Relative Strength Index (RSI). The price strength at 70 suggested that there the buyers still dominated the market.

On the downside, the RSI painted near overbought conditions, pointing to an impending correction as the uptrend loses momentum. Such a scenario would lead to a drop toward the EMAs and later toward the upper boundary of the declining channel at $0.0000070.

A drop further would take SHIB back into the confines of the descending channel where it may stay for a few more days before staging another comeback.