Kelvin Daminabo
Shiba Inu (SHIB) has seen a remarkable bounce back recently, showing a 2% increase in the last 24 hours and trading at $0.0000194. However, traders remain wary of a potential price decline. Despite hitting a one-month peak of $0.00002 on July 16, SHIB encountered a correction to $0.0000187. With a market cap of $11.4 billion, it ranks as the 12th largest cryptocurrency and the second largest meme coin.
An analysis of the data reveals some cautionary signals. Daily trading volume has shrunk by 27% in the last 24 hours, currently standing at $500 million. Moreover, there has been a 121% surge in whale activity, characterized by unique transactions per day involving at least $100,000 worth of SHIB. This uptick hints at potential price manipulation and heightened price volatility driven by significant whale movements.
The total open interest in SHIB has decreased from $59.6 million to $57.1 million, with funding rates dropping below zero, signaling a prevalence of short-position holders anticipating a price drop. A mere 5% upward shift could lead to liquidations totaling $2.5 million.
With the Relative Strength Index (RSI) at 61, SHIB is currently slightly overbought. A dip to 50 or lower could place SHIB back in the bullish territory. Traders are advised to proceed with caution as the data indicates potential price volatility and manipulation.
Despite the solid recovery of SHIB, the existing data points towards potential risks. Traders must remain vigilant against price manipulation and high volatility driven by significant whale activity. A decrease in RSI could bring SHIB back to a more positive zone, but at present, traders have to contend with obstacles preventing the meme coin’s surge.