The digital currency market is experiencing a significant correction, which is particularly impacting meme-based cryptocurrencies such as Dogecoin (DOGE), Shiba Inu (SHIB), Pepe Coin (PEPE), and BONK. Experts warn that a sharp downturn might be on the horizon, suggesting that these tokens have become overvalued after their recent surge, placing them in a precarious position for a potential sell-off.
SHIB Encounters Selling Pressure
Shiba Inu’s recent price falter may foreshadow a plunge beneath key technical levels, as the token is now struggling to maintain its value. Over the last three weeks, SHIB has seen a 43% decrease, plummeting from $0.000045 to $0.0000259. Technical analysis reveals a downward trend line on the daily chart, acting as resistance and possibly signaling waning buyer interest. Furthermore, the current supply dynamics have already driven SHIB’s price below a critical midpoint, hinting at dissipating bullish strength.
Prospects for SHIB Remain Uncertain
On the contrary, data shows that long-term token holders, defined as those who have kept their tokens for more than a year, have decreased their positions by 9.07%. This pullback by steadfast investors could lead to increased selling pressure, endangering support levels. If the selling intensifies and the price crosses below the 61.8% Fibonacci support at $0.00002376, SHIB could see a further dip to $0.00001812 by the end of the month. However, a breakthrough above the prevailing trend line might pave the way for a rebound in Shiba Inu’s market value.