The price of Shiba Inu (SHIB) broke the $0.000098 milestone for the first time since May 2023. The rebound came after Binance approved memcoin as a collateral asset for crypto loans.
On August 4, Binance released an official statement announcing SHIB and seven other altcoins as approved collateral assets. The move will allow holders to deposit Shiba Inu as collateral for loans on the largest cryptocurrency exchange.
Markets reacted positively to this news. Within 24 hours, the price of SHIB rose by more than 12% and reached a 3-month high of $0.00001. However, key on-chain indicators are giving warning signals, hinting that the rally will end soon.
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Shiba Inu trading volume soared 41%
The fading hype surrounding the launch of Shibarium resulted in Shiba Inu trading volume dropping 66% between July 27 and August 2. However, the approval of the token as a collateral asset on Binance triggered another wave of revival in the Shiba Inu ecosystem.
As shown in the chart below, at the close of trading on August 4, the volume of transferred tokens increased by 41% to 4.1 trillion SHIB.
Source: CryptoQuant
A sharp surge in trading volume is a bullish indicator and signals a growing market demand for an asset and may lead to a further increase in the price. However, there is a risk that the bulls will be stopped halfway.
Traders prepare to take profits
According to the data IntoTheBlocktraders placed active orders to sell 1.5 trillion SHIB – 100 thousand tokens more than in orders to buy.
Source: IntoTheBlock
This means that the bears may unload their positions once the ongoing rally peaks.
SHIB Price Prediction: Potential Correction from $0.000011
Given the above factors, Shiba Inu could break above the $0.000011 resistance level with some difficulty.
As shown below, the 318,950 addresses that purchased 243 trillion tokens at an average price of $0.000011 will try to thwart the bullish breakout. But if this resistance level is broken, SHIB will head towards $0.000014.
Source: IntoTheBlock
Bears, on the contrary, will strive to push through the $0.000008 support level. 53,000 wallets buying 28.4 trillion Shiba Inu at a low price of $0.000008 could prevent a further drop. However, in case of failure, the asset is waiting for a decline to $0.000006.
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2023-08-05 15:24:00
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