Shiba Inu (SHIB) Loses 13% in 24 Hours: What’s Happening?

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As a seasoned crypto investor with a knack for spotting trends and navigating market volatility, I find myself intrigued by Shiba Inu’s recent performance. The 13% drop over the past day has certainly caught my attention, but it’s not enough to shake my faith in this scrappy little dog coin.

Yesterday, Shiba Inu experienced a significant drop by 13%, following a strong surge earlier in the week. During this period, SHIB managed to break through substantial resistance barriers, reaching an impressive high of $0.000033. However, it subsequently retreated to $0.000029. Upon closer examination of the price chart, it appears that SHIB has just exited a bullish pennant formation.

From the present correction, it’s uncertain if this rally is long-lasting or simply a result of excessive buying. The Relative Strength Index (RSI) suggests that SHIB might experience a period of relaxation due to its recent surge into overbought territory. Interestingly, 73% of SHIB investors are still in profit at the current price level based on on-chain data, suggesting they’re still earning despite the dip.

Additionally, it seems that the rally and subsequent drop were heavily impacted by a large number of major investors (with 74% control). Over the past week, there’s been a high volume of transactions exceeding $100,000, with approximately $1.63 billion changing hands, suggesting that ‘whales’ are actively involved. In the coming days, the $0.000027 price range could serve as a crucial point of resistance.

If Shib maintains its current level, there could soon be a rebound fueled by increased investment from institutional and individual investors. For Shib to continue its bullish trend, it needs to surpass resistance levels at $0.000033 and $0.000036. Despite the recent drop, Shib’s network activity remains strong. The optimism surrounding the asset is high due to a significant number of long-term holders (nearly 77% holding for over a year).

If sustained selling pressure continues or the overall market weakens significantly, it’s hard to ignore the possibility of further price drops for SHIB. This correction might be part of a consolidation phase for this asset. However, if support remains strong and market optimism returns, another rally could occur. It’s essential for investors to exercise caution, watch key levels closely, and prepare for potential changes in the market.

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2024-12-02 16:44