Shiba Inu’s recent market performance has been a wild ride, with the token initially showing strong bullish momentum before abruptly reversing its course. The token’s value, which had been bolstered by substantial trading volumes, faced a swift decline as bearish sentiments took over.
The Rollercoaster of SHIB
In recent sessions, Shiba Inu (SHIB) has been a headline-grabber. Initially, the token demonstrated a robust uptick, buoyed by significant volume, suggesting a promising rally. However, the optimism was short-lived. By the end of the trading session, selling pressure had intensified, wiping out earlier gains and leaving market participants on edge. This volatility reflects broader trends in the crypto market, as highlighted in Crypto Rebounds From Early Declines Alongside Reversal in U.S. Stocks.
Technical analysis indicates that SHIB is currently consolidating below critical resistance levels, with many traders eyeing the $0.00001450 to $0.00001600 range for potential breakout cues. However, this optimism is tempered by concerning on-chain metrics. Whale netflows have plummeted by 311%, and active addresses have dropped by a staggering 68% since December. These metrics raise questions about the underlying health of SHIB’s current market position.
Diverging Analyst Opinions
The market appears to be at a crossroads, with SHIB’s price action suggesting a period of ranging behavior before any decisive movement. A break above the descending trendline resistance at approximately $0.00002044 could signal a new directional move. But there’s a catch. Only 17% of holders are currently in profit, meaning any price surge could trigger a wave of selling as investors look to recoup losses. This is not an isolated incident, as Crypto token failures soar, with 1 in 4 launched since 2021 dying in Q1, illustrating the precarious nature of new crypto ventures.
Experts are split on SHIB’s near-term outlook. Some analysts highlight emerging bullish patterns, while others caution that weakening fundamentals could impede any sustained rally. According to a recent report by The Crypto Basic, some analysts believe SHIB’s price could soar to $0.000033 in an upcoming rally. Yet, this prediction is met with skepticism, as CoinPedia notes SHIB’s struggle against a bearish EMA stack.
Technical Analysis Highlights
On the technical front, SHIB established a significant support level at $0.00001417 during a high-volume period around the 19:00 hour. This was followed by notable buying pressure, with volume spikes between 04:00 and 06:00 exceeding 700 million USD. However, the final trading hour saw a 1.77% retracement from the high, hinting at profit-taking behavior among traders.
The formation of a bearish EMA stack, with prices struggling to reclaim the 50-day moving average, paints a picture of short-term bearish sentiment. Additionally, a descending channel pattern on the hourly chart, characterized by lower highs and lower lows, further suggests market hesitancy.
Looking Ahead
As SHIB continues to navigate choppy waters, the question remains: can it break free from its current consolidation phase? With such a significant portion of its holders underwater, any upward momentum could face immediate resistance from sell-offs. The market’s eyes are on the $0.00002044 level—will it be a breakthrough or just another resistance?
For now, the SHIB saga remains one of uncertainty, with both potential and peril lurking. Investors and analysts alike will be watching closely, waiting for the next move in this ever-evolving crypto narrative.
Source
This article is based on: SHIB Spikes Then Reverses Sharply as Whale Activity Turns Bearish
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
