The price of Shiba Inu has dropped over 10% today, falling 22% within a week, as some early SHIB whales profited from meme coins, including Shiba Inu coin. As CoinGape warned last week, the price fell to the level of $0.000024. However, the SHIB technicals are preparing for a Santa Claus rally, as the meme token might not fall further below the low of $0.0000234.
Shiba Inu whale sell-off
On-chain data platforms have issued alerts about whale sell-offs worth millions of Shiba Inu coins. This triggered panic selling among SHIB holders, leading to a double-digit drop in the price of Shiba Inu on December 19.
Lookonchain reports that a whale sold 250 billion SHIB tokens, worth $6.05 million. Notably, this whale purchased 15.28 trillion tokens for $38,000 in August 2020.
Additionally, Spot On Chain revealed that the same whale sold another 150 million SHIB tokens to the Gemini cryptocurrency exchange. In November, an early whale '0xd6b' sold 100 billion SHIB.
According to Etherscan data, it still holds 20 trillion Shiba Inu coins, worth $48.38 million. Additionally, this has brought in nearly $108 million in total profits.
Shiba Inu price drop triggers community reaction
Shiba Inu traders and investors are liquidating positions due to whale sell-offs and overall weakness in the cryptocurrency market. According to Coinglass data, traders have liquidated nearly $5 million worth of long positions in SHIB, 1000SHIB, and SHIB1000 in the past 24 hours.
CoinGape warns that the price of Shiba Inu will drop to $0.000024, which is the 0.382 Fib retracement level. The decline in SHIB burn rate and addresses suggests a possible downturn. The dog-themed meme coin is now at a trading inflection point.
The Shiba Inu token community reacted to the unexpected drop, with some expressing concerns about the low SHIB burn rate. However, due to sentiment surrounding the SHIFU and TREAT tokens, the community is optimistic about a price recovery. The Shibburn portal shows that the weekly SHIB burn rate has decreased by 70%.
Shiba Inu price prepares for a parabolic rebound
The intraday low and high prices of SHIB are $0.000023 and $0.000026, respectively. After rebounding from the 0.5 Fib retracement level, it is currently trading at $0.0000241. In the past few hours, several exchanges, including Cryptocom and CoinEx, have recorded buying activity.
However, investors must watch the potential low of $0.0000234. On-chain and technical indicators are currently improving. During the continuation of next year's bull market, the price of Shiba Inu could peak around $0.0000998.
Analysts point out that $0.000037 is the next resistance level for SHIB to break. Some volatility is expected on the day of Donald Trump's inauguration in mid-January.
