In a recent post on X, a popular analyst Ali (@ali_charts), highlighted the significant growth of Shiba Inu (SHIB) in recent months despite its relative calm during the altcoin season. Ali noted a 55% increase in SHIB’s value over the past three months, indicating solid momentum.
SHIB’s recent increase in value can be linked to the broader cryptocurrency market experiencing a significant rally in late October and early November 2023, with Bitcoin exceeding $40,000 for the first time in months. This bullish sentiment spilled over to SHIB and the rest of the crypto market.
Following the increase in Bitcoin’s price, there has been a significant increase in the Shiba Inu burn rate. Burning tokens permanently removes them from circulation, potentially reducing supply and increasing demand.
Token burning has been driven by initiatives like the ShibBurn website, the burn mechanism integrated into Shibarium, which recently burned over 8.2 billion SHIB. All these factors have played roles in the recent increases in SHIB’s value.
A Potential Shiba Inu (SHIB) Selloff
While acknowledging the potential for further growth, Ali emphasized a significant resistance zone that SHIB faces, potentially hindering its upward trajectory. Additionally, Ali noted that nearly 90,000 addresses currently hold over 422 trillion SHIB for $0.000016, signifying a concentration of the meme coin.
With these large-scale holders currently holding their SHIB at a loss, they might be pressured to sell, and if they do, the market will become oversupplied with tokens, causing a significant price fall.
There are also many whales in the Shiba Inu community, as the last few months have seen multiple transactions of over 4 trillion SHIB. Some of these whales might be looking for an opportunity to sell and SHIB’s current increase could be the perfect opportunity.
In seven days, SHIB saw an impressive 18% increase, leading to deleting a zero, but has since lost the surging momentum and now trades below $0.00001. However, Shiba Inu’s 24-hour trading volume showcases a steady interest from investors.
As expected, the fear of these wallet holders dumping their tokens when the price of SHIB drops injects uncertainty and doubts about SHIB’s bullish run. Whether Shiba Inu can overcome this obstacle and continue to grow is currently the question users of the token are seeking an answer to.
⚠️Disclaimer
This content aims to enrich readers with information. Always conduct independent research and use discretionary funds before investing. All buying, selling, and crypto asset investment activities are the responsibility of the reader.
