With a 13% decrease over the past day Shiba Inu saw a major decline. This drop comes after a robust rally earlier in the week in which SHIB broke through significant resistance levels and rose as high as $0.000033 before falling back to $0.000029. The price chart analysis revealed that SHIB had just broken out of a bullish pennant pattern.
It is unclear from the current correction though if this rally was sustainable or the product of overbought conditions. Due to SHIB's recent ascent into overbought territory the RSI indicates a cooling-off period. With 73% of SHIB holders still in the money at the current price level according to on-chain data most investors are still making money despite the decline.
Furthermore the rally and subsequent sell-off appear to have been significantly influenced by large holders (74% concentration). The past seven days have seen a strong volume of transactions over $100,000 with $1.63 billion in value exchanged indicating that whales are actively participating. In the future a crucial support level is represented by the $0.000027 range.
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A rebound driven by heightened interest from institutional and retail investors may be imminent if SHIB maintains this level. On the upside SHIB must break through resistance at $0.000033 and $0.000036 in order to maintain its bullish trend. Even after the decline SHIB continues to show robust network activity. There appears to be confidence in the assets fundamentals given the large percentage of long-term holders (77% holding for more than a year).
If selling pressure persists or the market as a whole deteriorates it is impossible to overlook the potential for additional declines. The SHIB correction may be a necessary stage of consolidation. The asset may see another rally if support holds and market sentiment improves but investors should exercise caution and keep a close eye on important levels.
