- SHIB whale outflows surge 754%, signaling potential market volatility ahead.
- Price sensitivity around $0.000024 creates resistance, limiting upward momentum.
- Liquidation events reflect over-leveraged positions, fueling SHIB’s price swings.
Shiba Inu (SHIB) has seen a dramatic increase in whale activity, with a 754% surge in large holder outflows over the past week. This spike, coupled with shifting market dynamics, highlights the growing sensitivity of SHIB’s price and the potential for further volatility. As the token’s price hovers around $0.000023, investor sentiment is split, with key support and resistance levels now crucial for determining its near-term direction.
Shiba Inu’s Price Sensitivity and Holder Sentiment
IntotheBlock data shows that 53.8% of SHIB addresses are “in the money,” with holders purchasing SHIB below the current price. The majority of profitable addresses are clustered between $0.000014 and $0.000021, indicating strong buying interest in these lower price ranges.
Conversely, 41.45% of addresses are “out of the money,” holding SHIB purchased above the current price, particularly between $0.000024 and $0.000030. This suggests significant resistance if SHIB moves toward these higher levels.
Furthermore, about 4.75% of addresses are “at the money,” having purchased SHIB near its current price, indicating a break-even situation for these holders.
This distribution of addresses points to a crucial price range between $0.000021 and $0.000024. The resistance at the higher end of this range suggests that many holders are likely to sell once SHIB reaches break-even, which could limit upward momentum. However, the large number of profitable holders below this level supports potential bullish sentiment if SHIB manages to surpass $0.000024.
Liquidation Patterns and Market Volatility
In addition to wallet activity, SHIB’s liquidation trends provide further insight into market sentiment. Liquidation patterns have significantly contributed to SHIB’s volatility. For instance, in July, short liquidations reached approximately $5M, followed by a price increase.
More recently, in December, traders were caught off guard by a sharp price retracement, highlighting the impact of liquidation events on market fluctuations. As per Coinglass data, over $10 million in long liquidations were recorded, reflecting excessive bullish leverage.
Significantly, previous periods of low volatility, such as between August and mid-September, saw minimal liquidation activity. These liquidation events have been indicative of over-leveraged positions, further intensifying price swings.
Technical Indicators Suggest Short-Term Bullish Sentiment
Looking at the SHIB/USDT 4-hour chart, SHIB has recently shown a recovery from a low near $0.00002000. The current price of $0.00002314 reflects an ongoing recovery phase, with resistance expected between $0.00002350 and $0.00002400.
If SHIB manages to break this level, it could test higher resistance at $0.00002500. Conversely, a rejection may lead to retests of the $0.00002200 or $0.00002000 support levels. Key indicators, including the RSI and MACD, show improving momentum, confirming a short-term bullish outlook.
The RSI has recently climbed from oversold levels, signaling improving momentum. However, it remains below the neutral 50 mark, indicating that the recovery phase is still ongoing. Meanwhile, the MACD has crossed into positive territory, confirming short-term bullish momentum.
