While Shiba Inu (SHIB) experienced an increase of over 20% in its value in December, technical analyses indicated that the prices entered a drop zone at the $0.00001 level and shortly after retreated.
The price pullback of SHIB retested a region that acted as resistance only three weeks prior. Whether this level will remain as support and if Shiba Inu can continue its month-long upward trend remains uncertain.
SHIB bulls continued to ascend after defending the $0.0000075 level during the mid-November drop. The latest rally reached the $0.0000105 resistance area, which is close to the highest level in August, indicating that the region between $0.0000105 and $0.000011 could be a strong supply zone.
In December, the value of Shiba Inu rose by 29.7%, but this increase was followed by a decline. This situation explains the peak in social volume and SHIB prices, coupled with weighted sentiment reaching its highest level since mid-August.
In contrast, other metrics like the average age of the cryptocurrency highlighted a downward trend indicating increased distribution and selling activities on the network. A high MVRV ratio also heightened concerns that SHIB holders might prefer to realize their profits, thereby increasing the selling pressure behind the meme token.