The price of Shiba Inu has plummeted 20% today, with the meme token dropping to $0.00001927 as the cryptocurrency market fell 12% in 24 hours.
These losses conclude a few tough weeks for SHIB, which has now dropped 27% in seven days and 34% in 14 days, although it is still up 100% over the year.
However, today's drop comes after a specific whale sold 250 billion SHIB, worth about $6 million at the time of sale.
This paints a negative picture for the meme coin; however, its long-term price prediction appears more promising.
The price of Shiba Inu sharply declines as a $6 million whale sell-off causes chaos – Buy on the dip or keep selling?
The trading tracker tool Lookonchain warned followers about the aforementioned sell-off yesterday, noting that the aforementioned whale had purchased a large amount of 15.28 trillion SHIB for just $3,800 in August 2020.
The fact that this whale still holds a large amount of SHIB raises suspicions that the coin could suddenly drop in the current bullish cycle, as large holders take advantage of this opportunity to profit regularly.
When considering other tracking accounts, such as Whale Alert and Spot On Chain, it seems that no whales have recently participated in buying SHIB at a discount.
The meme token has been continuously declining since hitting a nearly year-high of $0.00003294 on December 7, a drop of about 38% since this peak.
Despite the recent decline, some analysts predict that the price of Shiba Inu could rise as high as $0.0001 next year, although there are warnings that prices will be volatile throughout that time.
Today's chart shows that the token price has bottomed out, with all indicators pointing to an imminent recovery.
For example, the relative strength index (purple) of Shiba Inu has not only fallen below 30 in the last hour but has also been below 50 for most of the past week.
We see something very similar to the 30-period moving average (orange), which has now reached a new low compared to the 200-period moving average (blue).
In other words, all current signs indicate that the price of Shiba Inu could skyrocket very soon, possibly by the weekend. Having reached a bottom, the price could return to $0.000025 by Christmas before ending the year at $0.000030. The new altcoin offers great profit potential.
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