Shiba Inu’s 17% price surge faces blockage from traders

Shiba Inu (SHIB) has made an impressive recovery over the past week, but investors are expecting a new drop in its price.

SHIB is up 2% in the last 24 hours and is trading at $0.0000194 at press time. The asset briefly reached a monthly high of $0.00002 on July 16 before facing a correction to $0.0000187 a few hours later.

SHIB price, RSI, open interest, whale activity and funding rate – July 17 | Source: Santiment

Moreover, Shiba Inu has a market cap of $11.4 billion, making it the 12th largest crypto asset and the second largest meme coin in the market. However, its daily trading volume has dropped by 27% in the last 24 hours and is currently hovering around $500 million.

According to data provided by Santiment, the number of whale transactions involving at least $100,000 worth of SHIB increased by 121% in the last 24 hours, from 81 to 179 per day.

The decline in trading volume for Shiba Inu suggests that with whale activity increasing, the meme coin could face high price volatility due to large whale movements and potential price manipulation.

Data from the market intelligence platform shows that SHIB total open interest has fallen from $59.6 million to $57.1 million in the last day. According to Santiment, the total funding rate amount raised by Shiba Inu has dropped below the zero mark – it currently stands at negative 0.003%.

At this point, the number of people holding short positions is greater than the investors holding long positions in anticipation of a price decline.

A move above 5 percent could potentially net Shiba Inu a $2.5 million windfall.

Notably, SHIB’s Relative Strength Index (RSI) is trending at 61, according to Santiment data. The indicator suggests that the meme coin was slightly overbought at reporting time. An RSI of 50 or below could potentially put SHIB back in bullish territory.