Following its peak after recent events, Shiba Inu [SHIB] has seen significant selling pressure from two large whale groups, leading to a sharp 53% drop in its value.
As SHIB breaches a crucial support level, more than half of its holders are now experiencing losses.
Despite this, there is some positive news. A recent analysis indicates a strong buying signal on the charts. The question now is whether the bullish investors will step up, or if SHIB will return to its pre-event levels.
SHIB Faces a Critical Moment
Over the last week, SHIB has been trading within a narrow range, finding solid support around $0.00001550. Trading volume has increased by 20% in the past day, suggesting increased interest from buyers.
Yet, without the backing of significant whales, a recovery for this meme coin appears unlikely. Unless this changes, a period of consolidation may be on the horizon until broader market conditions improve.
While the meme coin sector has declined by 7% on the day, SHIB’s 5% drop seems modest compared to other coins facing more substantial losses. Trading volume is far below the $7 billion peaks seen in the previous cycle, indicating that a breakout is not imminent.
If SHIB manages to hold this support level, indications of a bullish reversal will become more evident.
Could This Be the Perfect Opportunity?
Nothing is definite in the world of meme coins. With some coins recording nearly triple-digit losses in a month, investors have become more cautious.
The usual rush for quick profits is absent, casting uncertainty over SHIB’s long-term path. Yet, historical data reveals a significant battle at a key hurdle—strong resistance at $0.00002400.
There is potential for growth, given the RSI signaling ‘extreme’ lows and the MACD showing a bullish trend.
However, without a more robust accumulation pattern, Shiba Inu might remain range-bound between $0.00001500 and $0.00001775. Should momentum change, this could be an opportune moment to capitalize on the market before a potential upswing.