- SHIB has posted large gains over the past few days.
- Meme coins pumping while BTC struggles at resistance could be a warning.
Shiba Inu [SHIB] posted spectacular gains over the past week, gaining close to 120% from the previous Saturday’s low. The technical indicators showed demand remained strong, but the market conditions were overheated.
AMBCrypto reported that a SHIB whale wallet sold over 400 billion tokens, incurring a $6.32 million loss in the process after holding on for two years. Could this be a sign of exhaustion amongst the bulls?
SHIB reaches the 200% extension level
Source: SHIB/USDT on TradingView
In the blink of an eye, Shiba Inu raced from $0.0000119 to $0.0000212. In November and December 2023, SHIB rallied from $0.00000761 to $0.000001195. This move was used to plot a set of Fibonacci retracement levels.
The past two months saw the 78.6% level at $0.00000854 retested on three occasions as support, and the buyers defended that level thrice. The past week saw prices rally from just below the 50% retracement level to the 200% extension level, which coincided with a horizontal resistance level at $0.0000212.
Further north, the $0.00002818 is the next target, but bulls could seek to take profits. A triple-digit rally within a week is more than enough for any trader- but then again, this is a bull market, and things could get crazier.
The Open Interest breaches August 2023 highs
Source: Coinglass
The extraordinary rally saw the Open Interest swell higher over the past ten days. At press time the OI was at $108.79M on Binance. In mid-August 2023, when prices reached $0.000011, OI was at $106.46M.
Realistic or not, here’s SHIB’s market cap in BTC’s terms
The swift rise meant speculators were rushing to enter the market, betting on SHIB to rally further. Eventually, the ride must stop.
An examination of the lower timeframe OI behavior, if SHIB begins to fall over the next few days, could give more information on whether the current bullish sentiment has begun to swing the other way.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
