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With a drop of 13% over the past day Shiba Inu experienced a significant decline. This decline comes after a strong rally at the start of the week during which SHIB broke through important resistance levels and climbed as high as $0.000033 before falling back to $0.000029. Analysis of the price chart revealed that SHIB had just broken out of a bullish pennant pattern.
However, the current correction makes it unclear whether this rally was sustainable or a product of overbought conditions. Because of SHIB recent rise into overbought territory, the RSI indicates a period of reflection. With 73% of SHIB holders still in the money at the current price level, according to on-chain data, most investors are still making money despite the decline.
Furthermore, the rally and subsequent sell-off appear to have been heavily influenced by large holders (74% concentration). The past seven days have seen strong trading volume exceeding $100,000, with $1.63 billion in value traded, indicating that whales are actively participating. Looking ahead, a crucial support level is represented by the $0.000027 range.
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A rebound driven by increased interest from institutional and retail investors could be imminent if SHIB maintains this level. On the upside, SHIB needs to break through the resistance at $0.000033 and $0.000036 in order to maintain its uptrend. Even after the decline SHIB continues to show robust network activity. There appears to be confidence in the fundamentals of the assets given the high percentage of long-term holders (77% holding for over a year).
If selling pressure persists or the market as a whole deteriorates, the potential for further declines cannot be overlooked. The SHIB correction may be a necessary consolidation step. The asset could see another rally if support holds and market sentiment improves, but investors should exercise caution and keep a close eye on important levels.