Shiba Inu price analysis: Correction or upswing?

The crypto is not precisely in its best days, but it is hanging there with speculation that there will soon be a rebound. It is a natural course of action for cryptos to recover after they have fallen on the graph. Sentiments for Shiba Inu, however, are somewhat different. It is riding in the second position on the list of meme coins, which are collectively experiencing a shift in the interest of investors.

Recent Downturn and Technical Analysis

There is a pennant pattern formation on the graph, signaling that SHIB could mark an uptick in its value. The optimism among community members further backs it. Shiba Inu has been in correction since the early days of March, which is evident from the fact that it closed the month on a lower note than expected. That also invites the argument that it could simply be a downfall and not necessarily a correction.

The price of SHIB has dropped by 31% in the last 30 days, effective as of the time of writing this article. There have been a few upswings, but a drop at every turn has followed them. EMA and ASI portray a bearish environment for the next few days. Sellers are looking to accumulate the token at its lowest, provided it does not disappoint with another fall, which it potentially could.

Whale Activity and Market Dynamics

Market dynamics are volatile, which is surprising in the cryptosphere. What has recently triggered a downturn is probably heavy selling by whales. Unknown wallet addresses have reportedly shed over $5 million worth of SHIB tokens in the market, enabling others to get their hands on the token. Analysts have said that this is a bullish sign since selling follows purchasing activity.

Whales losing a portion of their holdings has coincided with a drop of 11%, followed by a rebound of approximately 7.8%. It is safe to assume that whales exercise a heavy influence on the token. They have sold their SHIB tokens through two different exchange platforms, namely Coinbase and Binance.

Withdrawal may be one of the factors since there is an alternate assumption that the drop is part of the overall dynamics of the market. BTC is losing its weight ahead of Halving, with many calling it a natural drop that has been tagged as a correction. Bitcoin is leading the trend, and meme coins and AI tokens are walking behind. It remains noteworthy that investors are shifting their interest to a segment, looking beyond the likes of BTC and ETH.

Looking Ahead

Whales will continue to influence the price movement along with market sentiment. It is only crucial for Shiba Inu to stay within the support level of $0.00002. That will pave the way for further downfall, currently estimated at a hit of 14%. For reference, the current exchange value of SHIB is down by 2.12% in the last 24 hours and 13.55% in the last 7 days.

SHIB will test previous highs. It will back the sentiments among enthusiasts to resume the upward trajectory for a new all-time high. Shiba Inu coin price prediction estimates that the token can hit $0.0000250 by the end of 2024.

Unresolved Questions

A total of two questions are yet to be resolved: if Shib Inu comes with a long-term profit-taking motive and if whales have complete control over triggering a bullish run. Their removal of the token is a possibility that has yet to find strong fundamental reasoning.

Conclusion

Shiba Inu is on the middle ground between being bullish and bearish. Whale activities have added to the complexities, leaving many wondering how strongly they will continue influencing the price dynamics. Patterns on the graph signal a rebound, but technical indicators caution against a bear run.

David Cox

David is a finance graduate and crypto enthusiast. He projects his expertise in subjects like crypto and Blockchain while writing for CryptoNewsZ. Being from Finance background, he efficiently writes Price Analysis. Apart from writing, he actively nurtures hobbies like sports and movies.

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