Shiba Inu (SHIB) has encountered a significant 13% drop in value over the last day, following an impressive rally earlier this week. During this surge, SHIB navigated through crucial resistance levels, achieving a peak of $0.000033 before retracting back to $0.000029. The recent price dynamics showcased a breakout from a bullish pennant pattern.
Nonetheless, it remains unclear whether this rally was sustainable or merely a response to overbought conditions, as suggested by the Relative Strength Index (RSI), hinting at a potential cooling-off period. Despite this recent decline, on-chain data indicates that 73% of SHIB holders are still in profit at current price levels.
The rally and subsequent sell-off seem to have been significantly influenced by large holders, contributing to a hefty 74% concentration. Over the past week, transactions exceeding $100,000 have reached an impressive volume of $1.63 billion, revealing heightened activity by whales. Moving forward, the $0.000027 range emerges as a pivotal support level for SHIB.
A potential recovery could be spurred by growing interest from both institutional and retail investors, provided SHIB maintains its current standing. For the bullish trend to remain robust, SHIB needs to breach resistance levels at $0.000033 and $0.000036. Despite the recent downturn, SHIB demonstrates strong network activity, with a significant portion of long-term holders (77% who have held for over a year) showcasing their confidence in the asset's fundamentals.
However, if the selling pressure endures or the broader market conditions deteriorate, further declines could be possible. This current correction may represent a necessary phase of consolidation, with another rally potentially on the horizon if support levels hold firm and market sentiment turns positive.
Investors should tread carefully and keep a close eye on these crucial levels..