Whale Activity Sparks $36M Shiba Inu Surge, Yet Price Stays Locked in Downward Channel

Shiba Inu Recovers After $36M Whale Transfer Spurs Brief Panic, But Downtrend Holds

Shiba Inu (SHIB) experienced a modest price rebound on Friday, climbing 3% from recent lows after investors absorbed news of a large token transfer that initially sparked fears of a sell-off. The recovery, however, comes within the context of a broader bearish trend.

The memecoin fell sharply on Thursday, hitting an intraday low of $0.00001190 following the transfer of 2.87 trillion SHIB—worth roughly $36 million—to Coinbase Institutional. The move triggered speculation about possible liquidation pressure, leading to a nearly 8% intraday decline.

However, on-chain analytics and AI-enhanced insights later identified the transaction as a non-selling custody movement by a market maker, easing concerns and opening the door for a relief rally.

By Friday morning, SHIB had retraced part of its losses, climbing back to $0.00001241, outperforming Bitcoin during the same window.

Trend Still Bearish, Despite Bounce

Technical analysis shows SHIB is still trading within a descending channel, shaped by lower highs and lower lows formed between May 12 and May 23. Despite the bounce, the asset remains down 10% over the past week.

Key developments:

• A short-term demand zone formed at $0.00001200
• Volume surge to 32.3B at 07:55 UTC signaled strong buying interest
• Price briefly pushed past minor resistance at $0.00001230
• SHIB now trades roughly 5% above Thursday’s low, showing signs of stabilization

Outlook

The near-term bounce may reflect opportunistic buying, but SHIB must break above the channel’s upper boundary (around $0.00001290) to confirm any trend reversal. Until then, the broader structure remains tilted to the downside.

About The Author

ctleditor

See author's posts