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Shiba Inu recently witnessed a whale transaction volume spike to 4.29 trillion SHIB, looking to leverage this for a rebound from the recent price drop.
With the bearish pressure slowing down, several crypto assets seek an avenue for a recovery. On Shiba Inu’s part, the token is observing an impressive increase in whale transactions across the board. Interestingly, this spike in whale transactions has coincided with a rapid surge in large buys.
SHIB Sees Increased Whale Buys
SHIB could be looking to ride on this trend to engineer its own recovery push. According to data from IntoTheBlock, Shiba Inu saw a rise in transactions worth at least $100,000 on July 6. These transactions amounted to a daily high of 4.29 trillion SHIB, the largest in nearly two weeks.
While such a cluster of whale transactions could either indicate a surge in buying or selling activity, further data confirms that the overall trend was generally bullish. Notably, on-chain data shows that bulls procured up to 4.24 trillion SHIB on July 6. Meanwhile, bears sold 4.18 trillion SHIB, leading to an excess demand of 48.67 billion tokens.
In addition, over the past week, the Shiba Inu market has witnessed trading activities from 127 bears (investors who sold over 1% of the 24-hour trade volume). However, the market has recorded activities from 133 bulls (investors who bought more than 1% of the 24-hour volume).
This increased buying pressure is bolstered by a reduction in Shiba Inu reserves on exchanges. Notably, Shiba Inu exchange reserve stood at 146.231 trillion tokens on July 1. This figure has since dropped to 143.714 trillion SHIB, indicating that investors have pulled out 2.517 trillion SHIB from exchanges in July.
Shiba Inu Levels to Watch
Moreover, complementing this bullish trend is the crossover of the MACD line above the Signal line. Notably, this phenomenon, which occurred on July 5, indicates a flip in momentum from bearish to bullish. As a result, Shiba Inu has since recovered Fibonacci 0.236 currently at $0.00001650.
SHIB currently trades for $0.00001660 at the reporting time. Its next target is the 38.2% Fibonacci retracement aligning with $0.00001897. This serves as the last roadblock to a recovery of the $0.000019 price territory. If Shiba Inu clinches this territory, increased demand could trigger a rally to Fibonacci 0.5 at $0.00002096.
Interestingly, multiple analysts expect Shiba Inu to eventually reclaim the $0.000045 yearly high in the recovery phase. Crypto Sheriff predicted last week that SHIB’s accumulation is close to an end, with an eventual rise to $0.000045. WebTrend Analytics also projected a return to $0.000045.