The Shiba Inu cryptocurrency (SHIB) has seen a notable decline in its value recently, dropping by 22% over the past week. This downturn, fueled by significant sales from cryptocurrency whales, has caused considerable unease among market participants. On December 19, the price of SHIB experienced an additional 10% drop, further exacerbating fears as it fell below the $0.000024 mark. Nevertheless, some investors remain hopeful for a potential rebound.
What Caused the Panic Selling?
Data from on-chain analysis platforms revealed the scale of SHIB sales by large holders. One particular whale sold an astonishing 250 billion tokens, amounting to $6.05 million. This individual had initially invested only $3,800 for 15.28 trillion SHIB back in August 2020. This large sale ignited panic, triggering a chain reaction of further declines in the market.
Concerns have also been raised within the community regarding the falling rates of SHIB token burn. The Shibburn portal noted a staggering 70% drop in burn rates over the last week. However, there are optimistic expectations surrounding TREAT and SHIFU tokens, which some believe may stabilize SHIB’s price. Many voices within the community express a shared belief that the present dip is only temporary.
Will Shiba Inu Recover Soon?
Currently, Shiba Inu’s price fluctuates between $0.000023 and $0.000026, resting at $0.0000241. It is currently receiving support from the 0.5 Fibonacci retracement level, with technical indicators suggesting the potential for a price increase as long as it remains above $0.0000234.
Critical resistance is seen at the $0.000037 mark, with market analysts forecasting that SHIB could potentially reach $0.0000998 if a bullish trend emerges in 2024. The market is expected to experience fluctuations in January that could offer substantial trading opportunities.
The current situation of Shiba Inu illustrates both challenges and opportunities for traders. Key takeaways include:
- The significant impact of whale sales on market sentiment.
- The importance of monitoring burn rates for SHIB.
- Potential resistance and support levels that could influence price movements.
- Anticipated market fluctuations in early 2024.
Monitoring these factors will be essential for traders looking to navigate the volatile crypto landscape effectively.
