Shiba Inu Recovers Amid Massive $36M Whale Transaction; Still Stuck in Downward Channel
Shiba Inu (SHIB) has shown resilience, recovering 3% from overnight lows below $0.00001200, outperforming Bitcoin (BTC) despite a large whale transaction. This follows a significant 7.7% correction on Thursday, pushing SHIB down to $0.0000119 before finding support at $0.0000120. The price rebounded to $0.00001241, according to CoinDesk data.
Initially, a substantial whale transaction involving 2.87 trillion SHIB (approximately $36 million) transferred to Coinbase Institutional raised concerns about potential selling pressure. However, subsequent analysis by CoinDesk’s AI research revealed the transaction was linked to market maker custody, mitigating fears of a large-scale sell-off.
Despite this recovery, SHIB remains 10% down for the week, reflecting broader market pressures. Technically, SHIB remains confined within a descending channel, defined by trendlines connecting the highs of May 12th and 23rd and the low of May 17th.
A detailed look at the past 24 hours reveals a sharp decline from $0.0000129 to a low of $0.0000119, representing a 7.7% drop accompanied by exceptionally high volume (2.9 billion) during a significant sell-off around 7 PM. However, the price found strong support at $0.0000120, with above-average volume indicating accumulation and establishing a clear demand zone.
The subsequent recovery phase saw the formation of an ascending support trendline, stabilizing the price around $0.0000122, approximately 4.9% above the intraday low. A notable recovery pattern emerged in the final hour, marked by significant volume spikes. Substantial accumulation occurred at 7:55 AM with exceptionally high volume (32.3 billion). A resistance zone at $0.0000123 was successfully broken in the final minutes of the period.
The price action suggests a battle between bearish and bullish forces. While the large whale transaction initially caused concern, its clarification as market maker activity and the subsequent strong support at $0.0000120 indicate underlying demand. However, the continued presence within the descending channel highlights the prevailing bearish sentiment and the need for a sustained breakout above the resistance level to confirm a bullish reversal.
