#ShibaInu Slumps 10%: Short-Term Traders Blamed

Shiba Inu ($SHIB ), the popular dog-themed crypto, has shed over 10% of its value in the past day. While it recovered slightly from steeper losses, analysts point to short-term traders as a key factor in the price swing.

On-Chain Data Suggests Short-Term Focus

Looking at on-chain data from IntoTheBlock, a clear trend emerges: investors seem more interested in quick profits. The "holding time of transacted coins" metric for #SHIB shows a concentration in the 2-week to 1-month range.

This short holding period indicates that many SHIB holders bought during the March surge, aiming to cash in on the price hike. When the price dipped on April 30th, it likely triggered selling by these short-term traders, contributing to the price drop.

March Surge Followed by Profit-Taking

Earlier in March, SHIB skyrocketed to highs of $0.000045, followed by a predictable wave of profit-taking. The price managed to climb to $0.00003285 on March 28th, but buying pressure waned, leading to a steady decline.

Wider Market Woes Play a Role

While short-term traders undeniably impacted SHIB's price, the broader crypto market downturn shouldn't be ignored. Bitcoin, the industry leader, has been on a downward spiral, dropping nearly 9% on Wednesday in anticipation of the Federal Reserve's interest rate decision. This broader market weakness likely contributed to the selling pressure on SHIB.

A Bullish Sign on the Horizon?

Despite the recent slump, there's a potential silver lining for SHIB enthusiasts. #Crypto analyst Ali observes a bull flag forming on the SHIB daily chart. If confirmed, this technical pattern could signal a potential price increase in the future. #BullorBear #cryptoniteuae