Shiba Inu’s Futures Open Interest Tops 7M SHIB as Price Recovery Meets Whale Selling

Shiba Inu (SHIB) is showing signs of recovery, with its price exceeding the 23.6% Fibonacci retracement level of the May-June sell-off. This represents a 1% increase over the past 24 hours, and a more substantial 5% gain over the past week. CoinDesk data confirms this upward trend, further supported by bullish signals from key indicators. Notably, the 14-day relative strength index (RSI) has crossed above 50, a bullish signal not seen since May 23rd. Trading volume has also significantly contributed to this positive momentum, consistently surpassing the daily average of 307.5 billion tokens throughout the recovery period. This high volume indicates strong market participation fueling the price increase.

Adding to the bullish sentiment, open interest in SHIB perpetual futures on Binance has surged past 7 million for the first time since May 23rd. Positive funding rates accompany this surge, suggesting growing investor confidence in further price appreciation. This suggests a significant number of investors are betting on continued price gains.

However, the upward trajectory faces potential headwinds. Whale activity, with ten wallets controlling over half the total token supply, presents a considerable risk. The movement of trillions of SHIB tokens to exchanges raises concerns about potential sell-offs. This concentration of tokens in the hands of a few entities could exert significant downward pressure on the price should these whales decide to liquidate their holdings.

Technical analysis reveals key price levels. A support zone exists between $0.00001172 and $0.00001175, attracting significant buying interest. Conversely, resistance is evident at $0.00001196, where price reversals have consistently occurred. A recent intraday high of $0.00001195, representing a 1% gain from the session open, highlights the current price ceiling. A notable 7.25 billion token volume spike further emphasizes the resistance at this level. Despite the bullish signals, the potential for significant selling pressure from whales remains a key factor to watch, potentially hindering the ongoing recovery.