As an analyst with years of experience navigating the tumultuous waters of the cryptocurrency market, I have grown accustomed to seeing the ebb and flow of asset prices. The recent drop in Shiba Inu (SHIB) is no exception, and while it may be disheartening for some investors, it’s important to maintain a level head and look at the bigger picture.
Dog-themed cryptocurrency Shiba Inu (SHIB) has seen its price drop from recent highs. Shiba Inu fell significantly in the past week amid broader caution in risk assets. Following a four-day drop, Shiba Inu rebounded from lows of $0.0000185 in Friday’s session, extending the recovery to highs of $0.000024 in Saturday’s session. The rebound met resistance at this key level, and it began to lose strength.
Most cryptocurrencies are presently experiencing a downturn, with Bitcoin seeing a drop during the early hours of Sunday following its approach to the $100,000 threshold. This Bitcoin decrease caused a ripple effect in the market, and Shiba Inu was among those affected.
Based on information from CoinGlass, a downturn in the market led to the cancellation of around $336 million worth of cryptocurrency positions. Notably, about $247 million of these were bullish wagers.
Over the past few days, signals from the Federal Reserve indicated potential smaller interest rate reductions coming up in the next year. This news negatively impacted stock markets, causing a ripple effect that extended to digital assets such as cryptocurrencies.
In my role as an analyst, I’ve noticed a subtle cooling down in various markets, notably the ones associated with cryptocurrencies. Assets that witnessed substantial growth throughout this year seem to be experiencing a slowdown in their momentum.
Currently, Shiba Inu’s price is decreasing by 7.29% over the past 24 hours, reaching $0.000021. This decline reflects the broader market sell-off. The fall has brought the token near its crucial support zones, which are essential for preserving its market equilibrium.
On-chain data highlights key support
Based on data from IntoTheBlock’s Global In/Out of Money indicator, the significant support levels for Shiba Inu are found at $0.000019 and $0.00002. At these prices, approximately 20.51 trillion SHIB tokens are being held by a total of 19,330 investors.
The range remains significant given the substantial amount of SHIB held at these price points. The concentration of SHIB at these levels suggests that prices could recover if broader market conditions improve.
If this support remains strong, these price points might act as a shield against additional declines. This is because investors at these levels could choose to hold onto their assets rather than sell, leading to price stability. These significant resistance levels can be found within the Shiba Inu‘s daily moving averages of 200 and 50, specifically at $0.0000187 and $0.0000254 respectively. This indicates that range trading could be a viable strategy, with the exception of a potential breakout in either direction.
Over the past day, there’s been a substantial 81% decrease in large transactions involving Shiba Inu. This could indicate that major investors (often referred to as ‘whales’) are choosing to stay out of action for now, preferring to observe market conditions more closely before making any significant moves.
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2024-12-22 13:35