Shiba Inu ($SHIB) has had a rough week, with its price dropping over 10% today and 22% overall in the past seven days. This dip seems to be caused by some early big investors, or “whales,” cashing out their profits. Analysts had warned this might happen, predicting a drop to around $0.000024—and they were right. But despite the recent slump, there’s hope that SHIB could bounce back, with some even speculating on a “Santa Claus rally” if key price levels hold.
What’s Going On With SHIB?
Big whales have been selling off large amounts of SHIB, which has added a lot of pressure to the price. One major whale, for example, just sold 250 billion tokens worth over $6 million. What’s wild is that this same whale originally bought 15.28 trillion SHIB in 2020 for just $3,800, making an insane profit.
And that’s not all—they’ve been steadily selling off more tokens. Recently, they unloaded another 150 billion on the Gemini exchange and had already sold 100 billion in November. Even after all this, the whale still has 2 trillion tokens left, valued at nearly $48 million. It’s safe to say they’re doing pretty well.
These big sell-offs, combined with general weakness in the crypto market, have caused some panic. In the past 24 hours alone, nearly $5 million worth of SHIB long positions were liquidated, according to Coinglass.
The Community’s Concerns
Understandably, the SHIB community is a little worried. On top of the sell-offs, the token’s burn rate—which helps reduce its supply—has dropped by 70%, according to Shibburn. That’s a big deal for a community that’s banking on scarcity to drive prices up.
Still, there’s hope. Many in the community are looking forward to new projects like SHIFU and TREAT tokens, which could bring some fresh excitement to the ecosystem.
Could SHIB Make a Comeback?
Looking at the charts, SHIB might not be down for long. It’s shown some resilience, bouncing back slightly after hitting key support levels. The token recently traded between $0.000023 and $0.000026, eventually landing at $0.0000241. Platforms like Crypto.com and CoinEx are also seeing an uptick in buying, hinting that investors are taking advantage of the lower price.
Analysts say $0.0000234 is the level to watch. If SHIB holds steady there, it could set the stage for a big rally, with the potential to reach as high as $0.0000998 during the next bull market. However, it will first need to break past resistance at $0.000037.
What’s Next?
While there are still risks, things aren’t all bad for SHIB. Technical indicators suggest it could be gearing up for a strong recovery. Some analysts are even predicting a big rally in mid-January, when market conditions might shake things up.
For long-term believers in SHIB, this dip could be an opportunity to buy in at a discount. 2024 is shaping up to be an interesting year for the token, so it might be worth keeping an eye on.
