Shiba Inu is looking to take advantage of a recent surge in whale transactions in order to make a steady climb back to the $0.000045 price level.
As the global cryptocurrency market experiences a period of consolidation, Shiba Inu has retraced most of its gains from last month. The downtrend has caused a 44% drop from its high of $0.000045 on March 5, but indications from the market suggest that it is on the brink of recovering this price level.
Data from IntoTheBlock reveals that Shiba Inu has been attracting investor interest, with existing investors showing a growing inclination to hold onto their tokens. The data also shows a significant increase in whale transaction volume for SHIB.
On April 23, large transactions involving SHIB reached a peak of 3.73 trillion tokens, indicating strong market activity. This figure further skyrocketed to 6.23 trillion SHIB, worth over $144 million, on April 24. These spikes in whale transactions have resulted in weekly highs as more participants enter the market.
While these whale transactions do not provide clear directional signals, insights from CryptoQuant suggest that investors have been withdrawing their SHIB tokens from exchanges this month. Between April 1 and 17, exchanges experienced 17 consecutive days of outflows as market participants moved their tokens to cold wallets for long-term storage.
Moreover, Shiba Inu is seeing an increase in daily active addresses, reaching a 30-day high of 1.31 million addresses on April 19. The new adoption rate, which indicates the proportion of new addresses making their first transactions, has remained above 40%, reaching 48.15% earlier this month.
Despite the downtrend, these metrics indicate that bullish sentiments are prevailing around SHIB. As a result, Shiba Inu aims to leverage this positive sentiment for a significant recovery. Coinpedia Markets highlighted this potential upswing in a recent post, noting SHIB’s previous 23% rise and its ability to break above its previous range high. With the first range high now acting as support, SHIB aims to surpass the second range high and eventually reclaim the $0.000045 price level.
Currently priced at $0.00002343, Shiba Inu has fallen below the support level. However, bears have defended the $0.00002182 level, which aligns with the Fibonacci 0.236 level. The immediate resistance for SHIB is at the Fib. 0.382 level ($0.00002388), and breaking above this level could bring it closer to the 50-day EMA ($0.00002479).
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