The price of Shiba Inu (SHIB) has taken a significant hit, dropping over 22% within the past week. This sharp decline has been attributed to heavy sales by large holders, or whales, causing panic among investors. On December 19, SHIB experienced a further 10% drop, bringing its price below $0.000024. Despite this, hopes for a recovery remain alive within the community.
Whale Activity Fuels Market Anxiety
On-chain data platforms have revealed substantial SHIB sales by whales. According to Lookonchain, a single whale offloaded 250 billion SHIB tokens worth $6.05 million. Interestingly, this whale initially acquired 15.28 trillion SHIB in August 2020 for just $3,800. The sudden sale has triggered a ripple effect, leading to a widespread price downturn.
Community members have also raised concerns about the declining SHIB burn rate. The Shibburn portal reported a 70% decrease in weekly burn rates, further dampening market sentiment. However, optimism persists due to anticipated launches of tokens like TREAT and SHIFU, which could potentially bolster SHIB’s price. Community members frequently share sentiments such as, “This drop is temporary; the market will recover soon.”
Recovery and Future Outlook for Shiba Inu
Currently, SHIB is trading at $0.0000241, finding support near the 0.5 Fibonacci retracement level. Its daily price range has hovered between $0.000023 and $0.000026. Technical analysts suggest that as long as SHIB holds above $0.0000234, it could stage a rebound.
Critical resistance is identified at $0.000037, with some experts forecasting a potential rally to $0.0000998 during a 2024 bull market. Anticipated market volatility in January presents an important opportunity for investors.
Investor Takeaway
The recent fluctuations in Shiba Inu’s price highlight both risks and opportunities. Investors are advised to rely on technical analysis and closely monitor key levels to navigate the market effectively.
Dey There will continue to provide updates on SHIB’s performance and market developments as they unfold.
