Shiba Inu Price: Corrective Phase Puts Meme Cryptocurrencies at Risk
The crypto market’s ongoing correction has had a significant impact on meme cryptocurrencies like Dogecoin, Shiba Inu, Pepe Coin, and BONK. These assets have experienced notable corrections as they were overbought after the last rally.
Shiba Inu Facing a Critical Decision Point
Shiba Inu, the second-largest meme cryptocurrency, has been in a correction phase for the past three weeks. During this period, its price has dropped from $0.000045 to $0.0000259, resulting in a 43% loss.
This downward movement is threatening to break below the 61.8% Fibonacci retracement level, indicating the possibility of further declines.
In the daily chart, there is a downsloping trendline that acts as a dynamic resistance for buyers. The price of SHIB has already fallen below the 50% retracement level due to an overhead supply, highlighting a weakening bullish momentum.
Recent data from IntoTheBlock reveals divergent behavior among Shiba Inu ($SHIB) investors over the last 30 days:
- Short-term holders (holding SHIB for less than a month) have increased their stakes by 64 trillion SHIB, representing a 278% surge. This indicates growing speculative interest among newcomers and short-term traders looking for quick gains.
- On the other hand, long-term investors (holding SHIB for over a year) have reduced their holdings by 9.07%, creating higher selling pressure and increasing the potential for another support breakdown.
If sellers manage to break the immediate support at the 61.8% Fibonacci level ($0.00002376), the price of SHIB may further decline to $0.00001812 by the end of March.
However, a potential recovery could occur if the Shiba Inu price breaks above the overhead trendline.
Technical Indicators:
- The rising 50-day Exponential Moving Average (EMA) at $0.0000237 may provide support for SHIB.
- The wide gap between the MACD (blue) and signal (orange) line indicates an intense correction trend for this meme cryptocurrency.
Hot Take: Shiba Inu Faces Uphill Battle
Shiba Inu is currently navigating a challenging period as it undergoes a corrective phase in the crypto market. The price has experienced a significant drop, and there are indications of further declines.
The behavior of short-term and long-term investors adds complexity to the situation. While short-term holders have shown increased interest, long-term investors have been reducing their holdings, creating selling pressure on SHIB.
The upcoming days will be critical for Shiba Inu as it approaches key support levels. A break below these levels could lead to additional losses.
On the technical side, the 50-day EMA may provide some support, but the wide gap between the MACD lines suggests that the correction trend is still strong.
Overall, Shiba Inu’s future performance will depend on market sentiment and investor behavior. Traders should closely monitor key levels and indicators to make informed decisions.
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