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With a significant drop of 13% over the last day, Shiba Inu seems to have lost its recent vigor. A strong rally that gave investors hope for long-term gains preceded this correction. Nevertheless, the current situation indicates that market participants, particularly whales, are increasingly less willing to support SHIB at its high levels.
A sudden drop in buying pressure is reflected in the sharp drop in price, with large holders likely taking profits following the notable upward move in SHIB. The apparent decline in trading volume demonstrates this behavior and raises the possibility that the fervor that motivated the rally may be weakening. A bearish descending triangle, which often portends more declines, is also where SHIB is currently consolidating.
As major cryptocurrency markets struggle to maintain their bullish momentum, market sentiment towards SHIB appears to be changing. Since altcoins like SHIB often mimic the market leader’s actions, investor apprehension has been heightened by Bitcoin’s recent decline. SHIB must first stabilize above its nearest support level at $0.00002300 in order to regain its bullish momentum.
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The price could fall further if this level is not maintained, with $0.00002050 being the next crucial support. SHIB needs a strong push above $0.00002700, which is currently an important resistance level in order to resume its uptrend. In the short term, large holders, or whales, will likely continue to exercise caution and wait to re-enter the market until more favorable conditions are established.
The recent massive sell-offs by these major players demonstrate their doubts about SHIB’s ability to maintain its rally. But if SHIB finds support at critical levels and market sentiment improves, whales could generally reinvest, providing further momentum to the sector.