The price of Shiba Inu (SHIB) has been experiencing a drawdown in response to a bearish market, with a surge in selling and declining confidence among holders potentially catalyzing a correction. The total supply of SHIB on exchanges has seen a sharp increase, reaching a six-month high. In the last 48 hours, over 4.66 trillion SHIB worth $103 million has been sold off by investors either securing gains or offsetting losses.
Long-term holders, typically known for their resilience, have also been seen moving their assets in response to the market conditions. Multiple spikes have been noted in the age-consumed metric, indicating large amounts of supplies or very old coins moving, both of which are bearish for the asset. These factors contribute to the observed drawdown in Shiba Inu’s price.
As Shiba Inu’s price failed to breach key levels and fell out of a consolidation range, it is now heading towards a critical support at $0.00002093, which has not been broken since April. There is a possibility of the price dropping below this level, potentially reaching $0.00002000, marking a multi-month low. However, if the price bounces back from $0.00002093, there is a chance for a slight recovery and continued consolidation, invalidating the bearish thesis.
In summary, the ongoing drawdown in Shiba Inu’s price is driven by increased selling pressure, declining confidence among holders, and movements by long-term investors. The market conditions and technical analysis suggest a potential decline in price and a test of critical support levels. Whether the price bounces back from these levels or continues to decline remains to be seen, but the bearish sentiment currently prevails in the Shiba Inu market.
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