According to U.Today, Shiba Inu's recent price action indicated that the asset had been significantly oversold, making it an attractive option for traders looking for a bounce buy. This overselling often suggests a potential technical rebound, as it typically signifies that the price has fallen too drastically and too quickly. Such rebounds are usually temporary and are more often caused by technical issues rather than underlying advancements.
Despite the brief recovery, a potential midterm downtrend still looms, especially if the overall market conditions persist in being negative. The bounce back for Shiba Inu also aligns with a general market pullback. Over the past few days, several assets have experienced significant losses due to intense selling pressure in the cryptocurrency market.
Shiba Inu followed the market reversal trend as signs of relief began to emerge. This slight respite for the entire market helped stabilize SHIB's price and aided its recovery. The collective recovery effort of the market created a conducive environment that allowed SHIB's price to climb above its lows.
Another key factor in SHIB's recovery is the apparent absence of whale activity. Whales, by selling large quantities of tokens, can significantly influence the market. However, the lack of whales meant there was less pressure to sell SHIB. With many inexpensive tokens available for purchase due to the absence of whales, it is easier for smaller investors to invest without fear that major sell-offs will push the price even lower. The environment for SHIB's recovery is now more stable as there is no downward pressure from whales.
