Shiba Inu (SHIB) recently rose to $0.00002668, attracting the attention of investors. However, large whale transactions and the Federal Reserve’s cautious stance on interest rates have raised concerns about the coin’s ongoing rally. While technical indicators point to a possible pullback, experts believe that SHIB’s long-term potential remains intact.

Large whale trades spark speculation

Over the past 24 hours, SHIB surged to an intraday high of $0.00002668 before encountering resistance. At the same time, a large transaction of 4 trillion SHIB tokens, worth $99 million, between two anonymous wallets stirred speculation in the crypto community. Large-scale whale activity like this often signals a market shift, potentially leading to sell-offs or significant portfolio adjustments.

Following the transaction, SHIB's price fell 5% and its market capitalization fell 5.3% to $14.19 billion. The drop has fueled speculation of a short-term correction, with many smaller investors expressing concern about the volatility created by whale moves.

Fed Policy and Its Impact on SHIB

The latest comments from the Federal Reserve have complicated the SHIB rally. Fed Chairman Jerome Powell stressed that the current economic situation does not warrant a rate cut. His comments reduced expectations for a December rate cut, dropping the probability from 83% to 62%, according to CME FedWatch data.

The Fed's cautious tone weighed on risk assets like cryptocurrencies. Bitcoin fell 1.5% to $87,751 after Powell's remarks, while SHIB fell 2.5% to trade at $0.00002469. As investors retreated from riskier markets, SHIB's rally faced additional challenges.

Technical indicators signal mixed outlook

Technically, SHIB faces resistance at $0.00002600, with major support at $0.00002480. The 50-day simple moving average (SMA) crossed above the 200-day SMA, forming a “Golden Cross,” a bullish signal. However, the Relative Strength Index (RSI) at 66.59 indicates overbought conditions, suggesting a correction is possible. Meanwhile, the Money Flow Index (MFI) at 47.32 points to a more balanced market sentiment.

SHIB trading volume has fallen more than 50%, reflecting a decline in interest in the derivatives market. Open interest in SHIB contracts has fallen 3%, indicating that traders are closing positions instead of opening new ones.

Future scenario and growth potential

Lucie, SHIB's marketing director, expressed confidence in the token's potential, predicting a price increase to $0.00006. Some analysts believe that SHIB could eventually rise to $0.0001, thanks to strategic developments and growing market interest.

While the Shiba Inu’s rally faces challenges from whale activity and macroeconomic factors, its long-term outlook remains tied to strategic progress and market sentiment. As Turkish Radio New York highlights, navigating these dynamics requires a careful balance of risk and opportunity.