According to U.Today, Shiba Inu (SHIB) has experienced a notable 13% decrease in value over the past day, following a strong rally earlier in the week. During this rally, SHIB managed to break through significant resistance levels, reaching a high of $0.000033 before retreating to $0.000029. The recent price movement was characterized by a breakout from a bullish pennant pattern. However, it remains uncertain whether this rally was sustainable or merely a result of overbought conditions, as indicated by the Relative Strength Index (RSI), which suggests a cooling-off period.
Despite the recent decline, on-chain data reveals that 73% of SHIB holders are still profiting at the current price level. The rally and subsequent sell-off appear to have been heavily influenced by large holders, with a 74% concentration. Over the past week, there has been a significant volume of transactions exceeding $100,000, amounting to $1.63 billion, indicating active participation by whales. Looking ahead, the $0.000027 range is identified as a crucial support level for SHIB.
A potential rebound could be driven by increased interest from both institutional and retail investors if SHIB maintains its current level. To sustain its bullish trend, SHIB must overcome resistance at $0.000033 and $0.000036. Despite the recent downturn, SHIB continues to exhibit strong network activity, with a large percentage of long-term holders (77% holding for more than a year) demonstrating confidence in the asset's fundamentals. However, if selling pressure persists or the broader market deteriorates, further declines cannot be ruled out. The current correction may serve as a necessary phase of consolidation, and another rally could occur if support holds and market sentiment improves. Investors are advised to exercise caution and closely monitor key levels.
