Shiba Inu Faces $2.12B Sell-off, Tests Key Support at $0.000021

by

In the wake of the crypto market’s decline, meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB) have experienced a substantial drop. Specifically, Dogecoin has decreased by approximately 9.92% in the last 24 hours, while Shiba Inu has seen a fall of about 9.11% over the same period. Here are their respective current values and some key statistics:

– Dogecoin (DOGE): $0.35, 24h volatility: 10.5%, Market cap: $51.18 B, Vol. 24h: $5.87 B
– Shiba Inu (SHIB): $0.000022, 24h volatility: 9.7%, Market cap: $12.68 B, Vol. 24h: $819.95 M

Currently, Dogecoin holds about half of the average cryptocurrency market with a valuation of $51.29 billion, while Shiba Inu has dropped to a market cap of $12.71 billion. Amidst a significant drop in prices, Shiba Inu finds itself at a crucial juncture close to its supply zone of $0.000021.

Shiba Inu Price Analysis

On the 4-hour chart, the price trend of Shiba Inu suggests a long-anticipated breakthrough of a resistance trendline, leading to an upward rally. Yet, this bullish surge didn’t manage to exceed the 50% Fibonacci level, which stands at approximately $0.00002468.

The 4-hour chart shows that Shiba Inu’s price trend is experiencing a resistance trendline breakout followed by a rally. However, this bullish surge fell short of reaching the 50% Fibonacci level at about $0.00002468.

Moving sideways due to a market correction, there was ultimately a double-top reversal that plummeted the market to the 23.60% Fibonacci level, which is $0.00002121. This significant Fibonacci support level aligns with a supply zone stretching from the $0.000020 psychological barrier up to $0.00002125.

The market moved sideways due to a correction and then reversed, causing it to drop to a specific point ($0.00002121) based on Fibonacci ratios. This critical support level also lines up with an area where sellers have been active, from $0.000020 to $0.00002125.

The retreat period has led to a downward intersection of the 20 and 50 Moving Average, reinforcing a negative trend. Additionally, the Relative Strength Index (RSI) has dipped into the oversold region, indicating an increase in selling activity.

It seems that the movement in Shiba Inu’s price may indicate a possible Morning Star pattern emerging at a significant support level. This suggestion is consistent with the temporary oversold status of Shiba Inu in the short term.

Whale Transfers 1.63 Trillion Shiba Inu

When Shiba Inu temporarily stops its decline at a significant support level, Whale Alert has reported a substantial transaction. In their latest tweet, Whale Alert pointed out a transfer of approximately 1.63 trillion SHIB tokens, worth about $39 million, to an unnamed wallet. This action appears to be a strategic buy-the-dip maneuver taken by the anonymous wallet owner.

Additionally, it indicates that certain investors have faith in Shiba Inu. Despite the general market prediction of the meme coin’s price remaining around the $0.000020 level, these signs lend credibility to the idea.

Massive Offloading as SHIB Falls

Despite the recent drop in Shiba Inu’s value, the total worth held by investors (in US dollars) decreased from approximately $22.99 billion on January 6 to $20.87 billion, representing a general decrease of about 9.23%.

In this price range between $100,000 and $1 million, there was a decrease from approximately $662.81 million down to around $653.44 million – that’s about a 1.41% drop. Similarly, the range between $1 million and $10 million showed a decline from around $3.16 billion to roughly $2.99 billion, which equates to a 5.38% decrease.

The most notable drop was seen in the price range exceeding $10 million, decreasing from approximately $19.17 billion to $17.23 billion – a reduction of 10.12%. This substantial decrease underscores heightened selling activity across all significant Shiba Inu holdings, with the steepest impact affecting the largest investors.

SHIB Price Targets

Based on the Shiba Inu’s indication that it may rebound from its critical support area, where the Relative Strength Index (RSI) is oversold, there seems to be a warning for potential correction due to the ongoing selling pressure.

Based on current trends, the meme coin might surge again to challenge its previous 38.20% Fibonacci level, which is approximately $0.00002307. As long as the bullish momentum continues at the 23.60% Fibonacci level, potential resistance will be found at the 38.20% and 50% Fibonacci levels.

On the downside, the bearish continuation will likely retest the $0.00001853 support level.

Read More

2025-01-08 16:30