Shiba Inu (SHIB) has been showing promising signs with an 8% increase in price within the last week, aiming to bounce back from a recent 25% slump over the past month. With a current market cap of $9.5 billion, SHIB is on its way to reclaiming the $10 billion milestone, solidifying its stance as the second-largest meme coin, trailing only Dogecoin (DOGE).
Despite this positive development, various indicators present a mixed picture, with the Relative Strength Index (RSI) falling short of reaching overbought territories and a continual decrease in whale holdings. The fate of SHIB's recovery hinges on its ability to surpass critical resistance levels and regain robust buying momentum.
Shiba Inu's RSI recently peaked at 67.6 before settling at 51.6, signaling an uptick in buying strength that, however, fell short of triggering overbought conditions. This failure to breach the 70 threshold indicates vigorous but not overwhelming buying pressure. As the RSI returns to a neutral zone, the price movement may stabilize before plotting its next course.
The dwindling number of SHIB whales – addresses with at least 1,000,000,000 SHIB – now stands at 10,546, the lowest level seen since July 2022. This decline reflects a trend of prominent holders reducing their positions, underscoring possible waning confidence among major investors. The influence of these whales on market dynamics, including liquidity and volatility, underscores the significance of tracking their activity.
While the downward trend in whale numbers has slowed recently, the continuous decrease could impede SHIB's ability to sustain robust rallies, consequentially weakening price support. However, a potential breakthrough in SHIB's price trajectory can be anticipated if the short-term trends start aligning with the long-term ones, hinting at a potential shift in momentum.
Looking ahead, SHIB's price movement remains pivotal as it navigates through critical support and resistance levels. A successful surge could propel SHIB towards reclaiming its previous highs, while a failure could lead to a significant downturn. The interplay between selling and buying pressure will dictate SHIB's trajectory in the coming days, ultimately determining whether the meme coin can prolong its positive momentum.