Shiba Inu (SHIB) Traders Make $426 Million Profit on Tuesday: Biggest Single-Day Sell Since 2022

Shiba Inu (SHIB) has lost 10% in value in the last 24 hours, but it attracted attention when traders made a huge profit of $426 million on Tuesday. This was the biggest single-day sell-off since February 2022. After these profit sales, the decline in SHIB’s price may continue. Here is an analysis of the latest status and possible future of SHIB.

Shiba Inu Sellers Are Selling Snow

As of January 7, SHIB’s Network Realized Profit/Loss (NPL) reached $426 million, the highest single-day level since February 2022. NPL is an indicator that shows the difference between the price at which an asset was sold and the current market price. This indicator reveals how much profit or loss traders have realized on the network.

If the NPL value increases, it indicates that investors are selling a large portion of their SHIBs at a profit. Increased selling pressure can put downward pressure on prices if the market supply is not met. This could lead to a further decline in the price of SHIB.

RSI Indicator in Downtrend: Increasing Selling Pressure

Shiba Inu’s RSI (Relative Strength Index) indicator confirms the current selling pressure. At press time, the RSI was trading at 41.96, below the 50 neutral line. This value suggests that the downtrend is continuing and selling pressure is increasing.

The RSI measures whether an asset is overbought or oversold. A reading above 70 indicates that the asset is overbought and the price is likely to fall, while a reading below 30 indicates oversold and a possible recovery. SHIB’s RSI of 41.96 indicates increasing selling pressure and market weakness. If the RSI is close to 30, SHIB’s price could decline further.

SHIB Price Prediction: Further Drops Expected

For the past 30 days, SHIB has been trading inside a falling parallel channel. This pattern consists of two downward sloping trend lines with lower highs and lows, indicating continued selling pressure. If SHIB continues to trade inside this channel, a drop to the $0.000018 level is possible.

However, this bearish scenario may be invalidated if the selling pressure eases and traders start accumulating SHIB, in which case the price of SHIB could potentially rally to $0.000025 and $0.000033.

Conclusion: SHIB’s Short-Term Outlook

The short-term outlook for Shiba Inu is pessimistic due to increasing selling pressure and low RSI levels. However, this could change as a short-term correction and investors evaluate buying opportunities. Depending on market dynamics, SHIB’s price may decline, but a recovery may occur as traders start buying again.