Shiba Inu (SHIB) price has been rising over the past 24 hours, reaching an intraday high of $0.00002668 before encountering resistance. However, with the Federal Reserve signaling a steady stance on interest rates, some investors are now questioning whether SHIB’s rally can sustain or whether a pullback is imminent.

Will Shiba Inu Prices Surge?

A significant transfer of 4 trillion SHIB tokens, worth around $99 million, took place between two unknown wallets, sparking speculation in the crypto community.

Large whale trades often lead to market volatility as they can signal an intention to sell or change positions.

When whales move large amounts of tokens, this often causes concern for retail investors as they fear that these moves could trigger a sell-off.

Market analysts said the timing of the transfer, which coincides with SHIB's recent price surge, may have made investors more cautious. Following the transaction, SHIB's price plunged nearly 5% with its market capitalization falling 5.30% to $14.19 billion.

Federal Reserve's Cautious View on Rate Cuts Impacts Sentiment

Federal Reserve Chairman Jerome Powell recently said that the US economy showed no signs of needing an immediate rate cut, allowing the Fed to “take a cautious approach.” The announcement has dampened expectations for a December rate cut, with CME FedWatch data showing the probability of a rate cut falling from 83% to 62%.

Powell’s comments led to a slight decline in cryptocurrency markets as investors weighed the implications for digital assets, which typically benefit from low-interest rate environments.

Following the speech, Bitcoin fell 1.5% to $87,751, while Ethereum and SHIB saw similar declines, with SHIB down 2.5% to $0.00002469. The Fed's cautious approach may have driven some investors away from riskier assets, potentially slowing SHIB's rally.

Technical Indicators Show Mixed Outlook For SHIB

Technical analysis shows that SHIB is currently facing significant resistance around $0.00002600. This level has acted as a barrier in recent days, as SHIB has struggled to sustain its upside momentum above this level. On the downside, SHIB has support at approximately $0.00002480, where the price has been steadily recovering in the previous trading sessions.

The 50-day simple moving average (SMA) has risen above the 200-day SMA, forming a “Golden Cross,” which is generally considered a bullish signal. However, the Relative Strength Index (RSI) at 66.59 indicates that SHIB is approaching overbought conditions, suggesting that the current rally may be due for a correction. Meanwhile, the Money Flow Index (MFI) at 47.32 shows moderate buying pressure, indicating balanced market sentiment without a clear directional bias.

Amid this price decline, SHIB trading volume has dropped by more than 50%, indicating reduced interest or activity in SHIB derivatives, which could signal waning momentum. Additionally, open interest in SHIB contracts has dropped by nearly 3%, suggesting that traders may be closing positions rather than opening new ones.

However, Lucie, Shiba Inu's marketing director, expressed confidence in the token's potential, predicting a possible rally to $0.00006. Meanwhile, according to Shiba Inu's price prediction, if this bullish momentum builds, a rally towards $0.0001 could be on the horizon.