- Shiba Inu coin erupted by 37% last week, claiming a new 3-month peak.
- After Mondayโs correction, SHIB is pushed back below key resistance.
- Analysts assert that SHIBโs rally continuation relies on Elliott Wave 3.
Shiba Inu (SHIB) pounced on the crypto market relief rally last week, climbing to a fresh monthly peak of $0.00002136 on September 28, 2024. This has convinced many large investors to return to Shiba and adjust their positions.
According to Santimentโs research, the broader crypto markets have enjoyed a resurgence in whale activity. PEPE led the meme coin niche with $1.1 billion in large transactions, qualifying as $100K or more. Dogecoin took second place with $938.5M, while SHIB snatched the bronze with a $573.54M volume in 7-day whale activity.
SHIB Picks Up Pace on Huge Whale Support
This served as a 360% boost for Shiba Inuโs whale activity compared to last week. Large holders picking up the coinโs volume usually give a bullish signal if the returning SHIB whales are accumulating rather than distributing. To determine this, DailyCoin looked at the Chaikin Money Flow (CMF) indicator, which is pivotal in establishing the whalesโ sentiment.
Compellingly, both one-day and one-hour technical Shiba charts show a positive pattern. The one-day charts point to a 0.09 CMF at publication, implying that large investors are increasing their stake holdings. The CMF is counted by a combination formula of recent volume and price movements, deeming the market oversold or overbought.
Is Shiba Crypto on Track to Reclaim $0.00002?
As the $10.9 billion market cap SHIB is changing hands at $0.00001851 after Mondayโs crypto market correction, traders are weighing the chances of a next leg in SHIBโs recent symmetrical triangle breakout.
However, only a daily close above the critical resistance of $0.00002 would validate the bullish thesis. According to on-chain data from IntoTheBlock, the next price range bubble starts at $0.000019, meeting SHIB with 99.21T tokens split between 102.36K wallets.
Furthermore, this strong resistance level between $0.000019 and $0.000024 could play out as a support level, given that SHIB’s market value returns to early June 2024 levels. Last Spring, SHIB and the main competing dog-themed tokens soared to yearly heights, with SHIB claiming $0.000044 for a brief moment on March 6, 2024.
The bull run for SHIB in March was the second-largest spike in the canine tokenโs history, only overshadowed by the greatest SHIB bull run to the current peak of $0.00008616 in October 2021. For Shiba to break this price range and produce a new all-time high, crypto traders rely on the Elliott Wave 3, which looks technically stronger than the previous two.
Besides the whale trading volume and other critical on-chain metrics, Shiba Inuโs northward trajectory is closely linked to the upgrades in Shibariumโs ecosystem and speculative tradersโ interest in Derivatives markets. Since September 19, 2024, Shiba Inuโs perpetual contracts have faced a substantial surge in Open Interest-weighted funding rates, but the volumes have significantly tumbled after last weekโs 37% run.
On the Flipside
- The Stochastic Relative Strength Index (stochRSI) still alludes to an overbought phase in Shiba cryptoโs price movements, between 69.66 and 53.95, as depicted in the above graphic.
Why This Matters
The cryptocurrencies most demanded by major investors tend to have a deeper market, which can be helpful in severe market conditions and drastic sentiment shifts.
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