Shiba Inu Plummets 10% as Trump Token Dominates Market

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Due to investor attention shifting towards the newly introduced Trump family coins, the Shiba Inu meme coin has experienced a drop. At present, it holds the second largest position among meme coins, boasting a market value of approximately $12.5 billion.

Shiba Inu is up against stiff competition from a newly minted Trump token, which boasts a market capitalization of $10.68 billion. Despite a 24-hour surge of 4.26%, Shiba Inu finds it challenging to maintain the $0.000020 milestone in its price range.

Could the growing stress on classic meme cryptocurrencies lead to a market drop this week? We’ll see about that.

Shiba Inu Price Analysis

On the day-to-day price chart, the Shiba Inu’s trend suggests a bearish outcome following the sideways movement within its consolidation phase. This consolidation phase was marked by a lower boundary at approximately $0.00002114 (support level) and an upper limit at around $0.00002433 (overhead resistance).

On Sunday, there was a significant drop of 10.71%. This marked a bearish collapse. However, the recovery during the day could be seen as a possible test of the boundaries set by the range breakout.

In simpler terms, the MACD (Moving Average Convergence Divergence) and signal lines are about to cross each other in a way that suggests a bearish trend. Additionally, the Daily Relative Strength Index (RSI) line struggles to remain above the 50% mark, indicating strong selling pressure from above.

Consequently, technical indicators suggest a pessimistic viewpoint for SHIB. According to the examination of price movements, if Shiba Inu cannot achieve a closing price over the $0.00002114 resistance level, it is likely that the downward trend from the consolidation period will persist.

If the trend continues to be bearish, the nearest floor for SHIB could drop to approximately $0.00001608. This represents a potential decrease of about 25% from its current value.

Looking on the bright side, should buying activity pick up again, a continuation of consolidation at around 0.00002433 USD might occur. Despite the mounting sell-off, the prominent Shiba Inu investors are exchanging their holdings for the freshly introduced tokens.

4-year Old Whale Locks Out

4-year-old Shiba Inu investor, known as 0x3de, has offloaded 216 billion SHIB tokens in the recent market drop, earning approximately 1587 other tokens. This whale initially purchased an astonishing 664.22 billion SHIB tokens for a mere 4510 dollars back in February 2021.

Early #memecoin holders are cashing out as #Trump’s newly launched tokens shake up the market!

1/ 4-year-old $SHIB whale “0x3de” sold 216B $SHIB for 1,587 $ETH ($5.39M) ~3 hours ago.

👉 This whale acquired 664.22B $SHIB for just $4.51K in Feb 2021 and now has 38.4B $SHIB…

— Spot On Chain (@spotonchain) January 20, 2025

Following the latest drop in prices, this significant investor remains in possession of approximately 38.4 billion SHIB, valued at around $832,000. With a profit of roughly $15 million, representing an astounding increase of nearly 30,000%, this investor is progressively disposing of their Shiba Inu coins.

Speculations Surge amid Rising Volatility

With increasing price fluctuations, there’s a surge in speculative activities within the derivatives market. Remarkably, the open interest for Shiba Inu has grown by 2.60% in the last day, now standing at approximately $447.77 million.

As open interest increases, the funding rate stays above zero at 0.0093%, indicating a continuous flow of funds from short to long positions. Yet, the long-to-short account balance shows more traders are selling rather than buying.

Consequently, there’s growing conjecture since more trading accounts are being sold off, even with increased open interest and funding rates. Additionally, the rise in funding rates suggests a decrease in the number of bullish accounts that are willing to pay an additional premium to maintain their optimistic positions.

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2025-01-20 17:58