- SHIB has recorded significant gains over the past few days.
- Meme Coin pumping while BTC struggles with resistance could be a warning.
Shiba Inu (SHIB) recorded a remarkable rise, rising nearly 120% from last Saturday’s low. Technical indicators show demand remains strong, but market conditions are heated.
AMBCrypto reported that the SHIB whale wallet sold over 400 billion tokens and lost $6.32 million in the process after holding them for two years. Could this be a sign of fatigue among bulls?
SHIB has reached 200% extension level.
Source: SHIB/USDT on TradingView
In the blink of an eye, Shiba Inu went from $0.0000119 to $0.0000212. In November and December 2023, SHIB rose from $0.00000761 to $0.000001195. This move was used to draw a series of Fibonacci retracement levels.
Over the past two months, the 78.6% level of $0.00000854 has been retested as support three times and buyers have defended that level three times. Last week, the price bounced from just below the 50% retracement to the 200% extension level, which coincided with the horizontal resistance level at $0.0000212.
Further north, $0.00002818 is the next target, but bulls could pursue profits. A triple-digit rally in a week is enough for any trader. But again, this is a bull market and things could get worse.
Open interest has reached a new high in August 2023.
Source: Coinglass
This particular rally has pushed open interest higher over the past 10 days. At the time of reporting, Binance’s OI was $108.79 million. In mid-August 2023, when the price reached $0.000011, OI was $106.46M.
Realistic or not, SHIB’s market cap in BTC terms is:
The sharp rise meant speculators were rushing to enter the market and betting that SHIB would rally further. Eventually, the operation must stop.
If SHIB begins to decline over the next few days, examining OI behavior on lower periods may provide more information on whether the current bullish sentiment is starting to move in the opposite direction.
Disclaimer: The information presented does not constitute financial, investment, trading or any other type of advice and is solely the opinion of the author.