Shiba Inu (SHIB) has returned to the forefront of the cryptocurrency market after a massive spike in whale activity, indicating a significant strategic shift in the market. On May 7, whale flows jumped by 2,952% from 238.91 billion SHIB to over 6.42 trillion SHIB, while net inflows increased by 6,050%, reflecting a clear repositioning from large investors.

The immediate impact on price and market momentum. The price of SHIB responded quickly to these moves, rising by 11% during the day, while open interest surged by 20.72% to reach $182.67 million. Trading volume also increased by 81%, reflecting a growing influx of investors into the market.

Has a new bullish trend for SHIB begun? Technically, SHIB has broken out of a descending wedge pattern, one of the prominent bullish reversal patterns. Over the past week, SHIB recorded four consecutive bullish daily sessions, bouncing from the support level at $0.00001240 and testing the 200-day exponential moving average near $0.00001297. A breakout above this level could confirm the start of a new upward trend.

The MACD indicator has turned positive, with the main curve crossing above the signal line in the positive area, reinforcing buying momentum. Additionally, the convergence of the indicator's histogram bars suggests increasing bullish pressure.

The Relative Strength Index (RSI) is close to 68, indicating strong buying interest, despite nearing overbought areas which may temporarily slow momentum.

Critical technical levels await SHIB

The Fibonacci level of 23.60% is at $0.00001450.

A breakout could drive the price towards $0.00001550 and then $0.00001600 (Fibonacci 61.80%), representing a potential increase of 20%.

In case of failure, the price may retreat to strong support at $0.00001156.

As analyst “MiguelFT Curado” observed a cup and handle pattern on the daily chart, with expectations of a rise to $0.00001678, provided momentum stays above the breakout area at $0.00001500.

Daily burns and the Shibarium network support the bullish trend. Burning policies continue to reduce the supply of SHIB, with over 410 trillion SHIB permanently removed. Although the recent daily burn was only 420,814 SHIB, the weekly burn rate exceeded 329 million SHIB, ensuring continued inflationary pressure.

On the network level, Shibarium, Shiba's second layer, continues to prove its strength. Over 1.129 billion transactions have been processed, with 206 million active wallets activated, enhancing the burn rate through gas fees and increasing demand for SHIB.

Data from IOMAP by IntoTheBlock shows that SHIB is currently trading near a critical resistance area at $0.000013, where over 12 trillion SHIB coins are held. Although 59% of investors are still at a loss, 78% of them have held the coin for over a year, reflecting long-term confidence in the project.

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