Shiba Inu's 17% Surge Hits Roadblock: What’s Next for SHIB?

Shiba Inu (SHIB) records a 17% price surge but faces challenges as traders predict another downturn for the asset.

SHIB Records Impressive Recovery

Shiba Inu (SHIB) has shown significant recovery over the past week, rising by 0.09% in the past 24 hours and currently trading at $0.0000190. On July 16, SHIB reached a one-month high of $0.00002 before correcting to $0.0000187. Despite this recovery, traders are anticipating a potential downturn for the asset.

Shiba Inu's market cap stands at $11.4 billion, making it the 12th-largest cryptocurrency and the second-largest meme coin in the market. However, its daily trading volume has decreased by 27% over the past 24 hours, now hovering around $500 million. This decline in trading volume contrasts with the recent price surge, indicating potential instability.

Increased Whale Activity in Shiba Inu

Data from Sentiment reveals a 121% increase in whale transactions involving at least $100,000 worth of SHIB in the past 24 hours, rising from 81 to 179 unique transactions per day. The increase in whale activity amidst declining trading volume suggests that SHIB might experience high price volatility due to potential price manipulation by large holders.

According to market intelligence data, SHIB's total open interest has dropped from $59.6 million to $57.1 million over the past day. Additionally, Shiba Inu's aggregated funding rates have fallen below zero, currently at -0.003%. This indicates a market sentiment leaning towards short positions, with traders expecting a price fall.

Impact of Potential Liquidations on SHIB

An upward movement of over 5% in SHIB's price could result in approximately $2.5 million in liquidations. This potential for significant liquidations adds to the uncertainty surrounding SHIB's short-term price movements, as traders closely monitor market conditions.

Sentiment data shows that SHIB's Relative Strength Index (RSI) is currently at 61, indicating that the asset is slightly overbought. An RSI below 50 could shift SHIB back into the bullish zone, suggesting that market sentiment is crucial in determining the coin's next moves.

Conclusion

Despite the recent surge, Shiba Inu faces potential volatility and trader skepticism. As market dynamics continue to evolve, SHIB's performance will be closely watched by investors and analysts alike.