Over the past 24 hours, Shiba Inu [SHIB] has encountered significant downward pressure.
Following an initial 8% surge to $0.00001739 earlier this week after a series of declines, most of those gains have now been erased, with SHIB currently trading at $0.00001701.
Recent analysis from CryptoCrypto has pointed out a shift in the market dynamics, indicating that traditional coins are losing ground to newly minted meme coins.
If this pattern persists, SHIB might not evolve into the 100x opportunity that many had anticipated to outshine Bitcoin by the next year.
SHIB Whales Adopting a Cautious Approach
Wallers holding 0.1% of the circulating supply represent roughly 60% of the larger holders, possessing a substantial 590 trillion SHIB tokens.
However, in the past day, there has been a notable decline in whale activity, with significant transaction volumes dropping by 35.41% and only 1.99 trillion SHIB tokens being transferred.
While heightened accumulation typically signifies a potential bottom in the market and presents buying opportunities during price dips, the reduced activity among whales could indicate a market peak as their confidence in SHIB’s short-term prospects diminishes.
Corroborating this, significant cohorts have moved 90 billion SHIB to exchanges over the last two days, contributing to a 6% decline in price.
Despite the impact of whale caution, the broader trend might not yet confirm an immediate pullback, as…
Bulls Regaining Dominance
On the daily price chart, a bearish crossover on the MACD coincided with the drop as large Shiba Inu whales trimmed their holdings.
Nevertheless, an overall negative flow signifies that bulls are now entering the market and absorbing the pressure by investing in SHIB.
This marks a crucial juncture for recovery. Recent actions by SHIB whales have led to its devaluation, causing many investors to face losses.
If the bulls continue their support, it could instill confidence in those at a loss and encourage holders to endorse SHIB’s price correction – a critical step towards an impending reversal.
Potential for Further Expansion
From a fundamental economic perspective, a rise in supply alongside robust demand can establish price stability.
Recent outflows of SHIB indicate a bullish sentiment, suggesting the potential for aggressive buying. This sentiment is also reinforced by the current neutral phase of the RSI.
However, a consistent upward trajectory is pivotal, heavily reliant on how holders position themselves post the sales by SHIB whales.
If the bulls effectively counter the selling pressure through vigorous buying, a reversal could drive SHIB towards its previous resistance level at $0.000020, a critical threshold for a potential breakout.
On the other hand, considering the overall market volatility and the growing shift of capital from SHIB to newly emerged meme coins, consolidation within the range of $0.0000175 to $0.0000160 appears more probable.