Shiba Inu (SHIB) saw a steep 13% decline within a day, wiping out much of its recent rally. This sharp correction followed a period of strong gains, where investors expressed optimism for sustained growth. However, market dynamics now show reduced enthusiasm, especially among major players like whales.
Large holders likely capitalized on the rally by taking profits, causing a significant drop in buying pressure. This sell-off triggered the price decline, coupled with a noticeable decrease in trading volume. The waning enthusiasm suggests that the rally’s momentum has slowed considerably. SHIB’s consolidation within a bearish descending triangle—a pattern often linked to further price declines—adds to concerns.
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Weak Market Sentiment Amplifies Pressure
The broader cryptocurrency market’s inability to sustain bullish momentum has contributed to SHIB’s struggles. As an altcoin, SHIB tends to mirror Bitcoin’s movements. Bitcoin’s recent downturn has heightened investor caution, casting doubt on SHIB’s potential recovery.
Source: CoinMarketCap
For Shiba Inu to regain its upward momentum, it needs to stabilize above the key support level of $0.00002300. If it fails to hold this level, the price could drop further, with $0.00002050 emerging as the next critical support zone.
Resistance Levels and Whale Activity
To reignite a bullish trend, SHIB must break past the significant resistance at $0.00002700. Until then, large holders—who have shown caution in recent days—may hesitate to reenter the market.
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Whales appear skeptical about SHIB’s ability to sustain a rally, as reflected in their recent sell-offs. If SHIB manages to find support at critical levels and market sentiment improves, whales could reinvest, boosting the token’s recovery.
For now, SHIB’s future depends on maintaining stability and overcoming key resistance zones. A renewed surge in investor confidence could reverse the current bearish outlook.
