Shiba Inu (SHIB) experienced a sharp 13% decline in the past 24 hours, falling from a high of $0.000033 to $0.000029. This drop follows a strong rally earlier in the week, where SHIB broke through key resistance levels. Notably, the price previously broke out of a bullish pennant pattern, raising hopes for a sustained uptrend.
Market analysts suggest that SHIB’s recent correction may be due to overbought conditions. The Relative Strength Index (RSI) indicates a cooling-off phase as SHIB entered overbought territory during its rally. Despite the drop, on-chain data reveals that 73% of SHIB holders remain profitable at current price levels, signaling that most investors are still in the money.
Source: CoinMarketCap
Whale Activity Drives Volatility
Large holders, or “whales,” have played a significant role in SHIB’s recent price movements. With 74% of SHIB’s supply concentrated among these major players, whale activity has driven both the rally and subsequent sell-off. Over the past week, transactions exceeding $100,000 totaled $1.63 billion, highlighting strong participation from these investors.
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SHIB’s next crucial support level sits at $0.000027. If the token holds this level, a rebound could occur, driven by renewed interest from both institutional and retail investors. For SHIB to regain its bullish momentum, it needs to break through resistance levels at $0.000033 and $0.000036.
Long-Term Holders Show Confidence
Despite the recent downturn, SHIB continues to show strong network activity. A notable 77% of holders have kept their positions for over a year, reflecting confidence in the token’s long-term fundamentals.
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While the current correction may signal consolidation, further declines remain possible if selling pressure persists or broader market conditions worsen. Investors should monitor key support and resistance levels closely.
A sustained rally could follow if market sentiment improves and support holds, but caution remains essential in navigating this volatile period.
