Shiba Inu price rose but faced resistance at $0.00002668, with 4 trillion SHIB transfers causing market volatility and potential pullback risk.
Shiba Inu (SHIB) has been on a bullish run over the past 24 hours, reaching an intraday high of $0.00002668 before encountering resistance. However, with the Federal Reserve signaling a steady interest rate stance, some investors are now questioning whether SHIB’s gains can be sustained, or if it will pull back.
Is there a risk of Shiba Inu prices rising?
A massive transfer of 4 trillion SHIB tokens, worth approximately $99 million, occurred between two unknown wallets, sparking speculation in the cryptocurrency community. Large whale transactions often cause market volatility as they can signal an intention to sell or transfer positions.
When whales move large amounts of tokens, it tends to cause anxiety among small investors, who worry that the moves could trigger a sell-off.
Market analysts believe that the timing of the transfer coincides with the recent rise in SHIB prices, which may cause investors to be more cautious. After the transaction, SHIB prices plummeted by nearly 5%, and the market value fell by 5.30% to US$14.19 billion.
The Fed's cautious stance on rate cuts affects market sentiment
Federal Reserve Chairman Jerome Powell recently said the U.S. economy shows no signs of an immediate need for rate cuts, allowing the Fed to “be cautious in making decisions.” The statement dampened expectations for a rate cut in December, with the probability of a cut falling to 62% from 83%, according to CME FedWatch data.
Powell’s comments caused the cryptocurrency market to slip slightly as investors weighed the move’s impact on digital assets, which typically benefit from a low interest rate environment.
Following the speech, Bitcoin fell 1.5% to $87,751, while Ethereum and SHIB experienced similar declines, with SHIB falling 2.5% to $0.00002469. The Fed’s cautious approach could keep some investors away from riskier assets, potentially slowing SHIB’s upward momentum.
Technical indicators show mixed outlook for SHIB
Technical analysis shows that SHIB is currently facing significant resistance around $0.00002600. This price point has acted as a barrier in recent days, with SHIB struggling to maintain momentum above this threshold. On the downside, SHIB has support at around $0.00002480, with the price having been bouncing around this level over the past few trading days.
The 50-day simple moving average (SMA) has risen above the 200-day SMA, forming a "golden cross," which is generally considered a bullish sign. However, the relative strength index (RSI) at 66.59 indicates that SHIB is close to overbought conditions, suggesting that the current rally may need a pullback. Meanwhile, the money flow index (MFI) at 47.32 shows moderate buying pressure, suggesting that market sentiment is balanced with no clear directional bias.
During the price decline, SHIB trading volume fell by more than 50%, indicating a decrease in market interest or activity in SHIB derivatives, which could signal a loss of momentum. In addition, open interest in SHIB contracts fell by nearly 3%, suggesting that traders may be closing positions rather than opening them.
Nonetheless, Shiba Inu’s marketing executive Lucie is confident in the token’s potential, predicting that it could rise to $0.00006. Meanwhile, according to Shiba Inu’s price prediction, if this bullish momentum gains momentum, a rise to $0.0001 could be imminent.
