Shiba Inu Price Forecast: SHIB defends key support level amid possible whale support

• Shiba Inu edges higher on Monday, sustaining dominance above a key retracement level near $0.00000462.
• On-chain data shows that top non-exchange addresses expanded their holdings after a spike in whale activity on Friday.
• Retail demand for SHIB holds steady with rising Open Interest and funding rates.

Shiba Inu (SHIB) price edges higher on Monday, bouncing off a key support level near $0.00000462. The meme coin shows early signs of renewed whale support, while retail demand holds firm, with rising Open Interest and funding rates. The technical outlook for SHIB indicates a mild bullish bias, supported by the intraday recovery.

Are whales buying back Shiba Inu?

On-chain data shows early signs of renewed demand for the Shiba Inu meme coin from large wallet investors, commonly referred to as whales. According to Santiment, the top non-exchange addresses held 533.41 trillion SHIB on Sunday, up from 533.10 trillion on Tuesday. Meanwhile, the supply on exchanges – typically considered as available selling pressure – has dropped to 138.74 trillion SHIB on Monday, from a 138.96 trillion peak on Friday.

In addition, a sharp rise in whale trading activity of more than $1 million on Friday, totaling 10 trades, coupled with a reduction in exchange supply, suggests renewed demand from top holders. 

Is retail missing out on SHIB?

Speculative demand for SHIB in the derivatives market holds firm. CoinGlass data shows that SHIB futures Open Interest (OI) is up over 4% in the last 24 hours to $46.86 million, reflecting a steady buildup in positions. At the same time, the funding rate increased to 0.0100% on Monday, up from 0.0014% on Friday, indicating rising demand among traders for long positions and leading to higher premiums. 

Technical outlook: Will SHIB extend its rebound?

Shiba Inu edges higher on Monday, seeing early signs of recovery from the crucial support level of $0.00000462, aligning with the 78.6% Fibonacci retracement level, measured from the $0.00000670 high to the $0.00000405 low. The intraday recovery shows early signs of a potential double-bottom reversal, with a neckline around Tuesday's high at $0.00000506.

Momentum on the daily chart remains mixed, with the Relative Strength Index (RSI) at 51, showing early signs of a potential recovery from the midline. At the same time, the Moving Average Convergence Divergence (MACD) remains below the signal line in the positive territory as the bearish profile expands.

A decisive close below the $0.00000462 level could nullify the rebound chances, potentially extending the decline toward the Fibonacci anchor at $0.00000405.

On the top side, a steady rise above the $0.00000500 psychological level could extend the rebound toward the 50% retracement level at $0.00000538, which serves as a key resistance that capped gains in late July.

(The technical analysis of this story was written with the help of an AI tool. Know more.)