The recent drop in Shiba Inu (SHIB) has sent ripples through the crypto community, especially as it has fallen below a significant support level. Presently, SHIB trades under the 100 EMA and is inching closer to the critical 200 EMA on the charts. The token has experienced a decline of 1.70% over the last day, settling around $0.00002142. With this price action, it appears that SHIB is struggling to maintain its previous upward momentum, signaling a bearish trend for its passionate holders.
Recent on-chain metrics shed light on the shifting dynamics among large holders. Addresses holding between $1 million and $10 million of SHIB have dropped by 10.17%, while those with over $10 million have seen an even sharper decline of 28%. Such sell-offs from influential market players raise red flags about the overall confidence in SHIB, suggesting that these investors might be cashing out or losing their bullish outlook on the token’s short-term potential.
On the flip side, smaller investors seem to be taking a more curious approach. There has been a 20% increase in wallets containing between $1-$10 worth of SHIB, showcasing some minimal interest from new and casual investors. However, these smaller inflows are unlikely to counterbalance the significant sell-offs from the larger players, which puts an extra strain on SHIB’s market stability.
What one must remember is that SHIB is heavily influenced by investor sentiment and wider macroeconomic factors. The resistance levels sitting at $0.00002500 and $0.00003000 continue to loom overhead. Furthermore, the pivotal support level at $0.00002000 is a make-or-break point for the token’s price action.
If SHIB can’t hold above this level, we may see it testing $0.00001750 next. Long-term recovery will hinge on rekindled interest from larger holders and the development of broader use cases for the token.
Without a significant surge in buying pressure, the current technical indicators suggest that SHIB could be in for a phase of consolidation or even more declines. Regular investors may want to tread cautiously and avoid overly risky maneuvers amidst this fluctuating market climate.
