Shiba Inu price has sharply retraced, facing greater downside risks: future trends are uncertain

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Shiba Inu (SHIB) has recently retraced to levels before the surge, with the current trading price around $0.00002217, nearly erasing the gains made during last month's market recovery. This sharp decline has raised concerns in the market, especially regarding the loss of momentum in the asset and the breach of important support levels.

This retracement indicates that the bullish momentum since the end of November has completely faded, and SHIB may continue to decline. Analysts point out that the lack of buying pressure and diminished enthusiasm from retail investors are the main reasons for the price drop. Volume analysis shows that the sell-off was accompanied by a surge in trading activity, indicating that whales and large shareholders sold off significant holdings during the rebound. This supports the view that "early investors are locking in profits, while new investors are more susceptible to price fluctuations."

From a technical standpoint, SHIB has fallen below the 50 and 100-day EMA, suggesting a potential trend reversal. The next key support level is $0.0002047 near the 200-day EMA. If this level cannot be maintained, SHIB may decline further. Currently, the lack of sustained investor interest and strong demand means that SHIB may continue to face difficulties, and the community feels anxious about future trends.

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