In the ever-evolving world of cryptocurrency, Shiba Inu (SHIB), the second-largest meme token by market value, is making waves. The token’s futures open interest on Binance has soared beyond 7 million SHIB, a milestone not seen since late May. This spike signals growing investor confidence in potential price gains, even as large holders, often called “whales,” offload significant amounts of SHIB to exchanges. Let’s break down what’s happening with SHIB and why it matters for crypto enthusiasts.
Price Recovery Gains Momentum
SHIB has shown resilience, climbing over 5% in the past week and trading above a key technical level known as the 23.6% Fibonacci retracement of its May-June dip. On a 24-hour basis, the token is up more than 1%, reflecting a steady recovery. Data from CoinDesk highlights that trading volume has surpassed the daily average of 307.5 billion tokens during this upward trend, a sign of strong market participation.
Adding to the optimism, the 14-day Relative Strength Index (RSI), a tool used to gauge market momentum, has moved above 50 for the first time since May 23. In simple terms, this suggests that SHIB is entering a bullish phase, where buying pressure could outweigh selling.
Futures Market Heats Up, But Whales Sell
The futures market for SHIB is buzzing. Open interest in perpetual futures on Binance—a type of contract that lets traders bet on price movements without an expiration date—has crossed the 7 million SHIB mark. According to Velo data, this surge, paired with positive funding rates, indicates that many investors are placing bets on further price increases.
However, not all signs point to smooth sailing. Large SHIB holders, or whales, are moving trillions of tokens to exchanges, potentially to sell. With just ten wallets controlling over half of the total SHIB supply, their actions could put downward pressure on the price, challenging the current recovery.
Key Levels to Watch
For those tracking SHIB’s price movements, here are some critical insights:
• Support Zone: Between $0.00001172 and $0.00001175, where buyers have shown strong interest.
• Resistance Level: Around $0.00001196, where the price has consistently faced pushback.
• Recent High: An intraday peak of $0.00001195, marking a 1% gain from the session’s opening.
• Volume Spike: A notable 7.25 billion token surge during a recent breakout attempt at resistance.
These levels could determine whether SHIB continues its upward trajectory or faces a pullback due to whale selling.
What’s Next for Shiba Inu?
Despite the whale sell-off, the path of least resistance for SHIB appears to lean toward further gains. The combination of rising futures interest, bullish technical indicators, and high trading volume paints a promising picture for the meme token. However, the actions of large holders remain a wildcard that could sway market sentiment.
For crypto investors, SHIB offers an intriguing mix of opportunity and risk. Staying informed about key price levels and market trends will be crucial as this recovery unfolds. Keep an eye on futures activity and whale movements—they could be the deciding factors in SHIB’s next big move.
