Shiba Inu Recovers Amid Massive $36M Whale Transaction; Still Stuck in Downward Channel

Memecoin Shiba inu SHIB has chalked out a 3% recovery from overnight lows under $0.00001200, outperforming bitcoin BTC despite reports of a massive whale transaction.

On Thursday, SHIB experienced a significant 7.7% correction, dropping to 0.0000119 before finding strong support at the 0.0000120 level. Prices have since bounced to $0.00001241, according to CoinDesk data.

A massive whale transaction of 2.87 trillion SHIB, worth $36 million to Coinbase Institutional, initially triggered market concerns, according to CoinDesk's AI research. The transaction, however, was later identified as being associated with market maker custody rather than a whale looking to sell coins.

However, despite the recovery, SHIB still trades 10% lower for the week as investors navigate broader market pressures. Furthermore, the cryptocurrency remains stuck in a downward-trending channel, identified by trendlines connecting the highs on May 12 and May 23 and the low on May 17.

AI technical insights for the past 24 hoursSHIB dropped from 0.0000129 to a low of 0.0000119, representing a 7.7% decline with exceptionally high volume (2.9B) during the 19:00 hour sell-off.The price found strong support at the 0.0000120 level, with accumulation evidenced by above-average volume, establishing a clear demand zone.An ascending support trendline has formed during the recovery phase, with the price stabilizing around 0.0000122, approximately 4.9% above the period low.SHIB demonstrated a significant recovery pattern in the last hour, climbing with notable volume spikes.Substantial accumulation occurred at 07:55 with exceptionally high volume (32.3B).A clear resistance zone emerged at 0.0000123, which was successfully breached during the final minutes of the period.