- Shiba Inu falls 7% amid a broader crypto market slowdown triggered by the Federal Reserve’s cautious stance.
- A massive transfer of 4 trillion SHIB tokens raises concerns about a potential sell-off and price volatility.
- Analysts predict a Shiba Inu rally to $0.00003200, with a bullish long-term outlook despite the recent downturn.
Shiba Inu (SHIB) fell 8% over the past 24 hours, reflecting broader market trends as the Federal Reserve takes a cautious approach to monetary policy. Comments from Chairman Jerome Powell about the lack of urgency to lower interest rates have reduced investor appetite for high-risk assets like SHIB.
Adding Fuel to Uncertainty, Whale Warnings reported a massive transaction involving 4 trillion SHIB tokens, valued at $99 million. The transfer took place between two unidentified wallets, raising concerns about a potential sale. Such large whale movements often unsettle small investors, stoking fears of further price volatility and market decline.
MadWhale, crypto analyst added to bearish sentiment with a recent TradingView article. The analyst predicts that SHIB could face a sharp decline towards its next lower Fibonacci support level, estimated just above $0.000020. This analysis highlights the potential for short-term price corrections.
Potential Shiba Inu Price Rise After Drop
Despite the looming concerns, MadWhale remains optimistic about Shiba Inu’s long-term prospects. The analyst predicted a robust recovery from the forecast decline, with prices potentially reaching $0.00003200 in the initial phase of the rebound. According to MadWhale, an increase in trading volume and strong community support are the main drivers of their positive outlook.
Shiba Inu’s growth prospects are further supported by its correlation with Bitcoin, which currently stands at 0.91, according to data from IntoTheBlock. This strong correlation implies that any significant movement in Bitcoin could have a direct impact on SHIB’s price trajectory. Notably, Bitcoin’s recent rally beyond $90,000 has indirectly strengthened SHIB’s performance.
Dogecoin’s parabolic rise also contributed to the Shiba Inu rally due to their price correlation. However, analysts like Kevin Capital are warning of an impending Dogecoin correction, which could also potentially bring down Shiba Inu.
Shiba Inu eyes ATH break by 2025
Not all analysts share a cautious view. In a recent X article, cryptocurrency analyst Investing Haven predicted that SHIB could reach $0.0000444 by the end of the year, aligning with the 25% Fibonacci retracement. The analyst highlighted the October decline, where buyers stepped in, reinforcing a bullish setup for the token.
Investing Haven also shared an ultra optimistic view for 2025, suggesting that the cryptocurrency could reach $0.00007436. This would still be short of the token’s all-time high (ATH) of $0.000088. Meanwhile, crypto analyst Javon Marks predicted that Shiba Inu would not only revisit his HUD but also surpass it in the years to come.
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