Shiba Inu Recovers Amid Massive $36M Whale Transaction; Still Stuck in Downward Channel

CoinDesk
CoinDesk
BTC-2.10%

Memecoin Shiba inu SHIB has chalked out a 3% recovery from overnight lows under $0.00001200, outperforming bitcoin BTC despite reports of a massive whale transaction.

On Thursday, SHIB experienced a significant 7.7% correction, dropping to 0.0000119 before finding strong support at the 0.0000120 level. Prices have since bounced to $0.00001241, according to CoinDesk data.

A massive whale transaction of 2.87 trillion SHIB, worth $36 million to Coinbase Institutional, initially triggered market concerns, according to CoinDesk's AI research. The transaction, however, was later identified as being associated with market maker custody rather than a whale looking to sell coins.

However, despite the recovery, SHIB still trades 10% lower for the week as investors navigate broader market pressures. Furthermore, the cryptocurrency remains stuck in a downward-trending channel, identified by trendlines connecting the highs on May 12 and May 23 and the low on May 17.

AI technical insights for the past 24 hours

  • SHIB dropped from 0.0000129 to a low of 0.0000119, representing a 7.7% decline with exceptionally high volume (2.9B) during the 19:00 hour sell-off.
  • The price found strong support at the 0.0000120 level, with accumulation evidenced by above-average volume, establishing a clear demand zone.
  • An ascending support trendline has formed during the recovery phase, with the price stabilizing around 0.0000122, approximately 4.9% above the period low.
  • SHIB demonstrated a significant recovery pattern in the last hour, climbing with notable volume spikes.
  • Substantial accumulation occurred at 07:55 with exceptionally high volume (32.3B).
  • A clear resistance zone emerged at 0.0000123, which was successfully breached during the final minutes of the period.
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