We all had hopes for Shiba Inu, however, the asset could not return above the 200 EMA threshold and is currently showing a descending tendency, with the price most likely falling toward the $0.00001 level. However, it is no reason to panic.
Shiba Inu has not been doing well lately, with price action being unfavorable and the market unable to sustain big gains. An effective resistance level has been provided by the technical indicators, especially the 200 EMA, which acted as a support in the past.
SHIB/USDT Chart by TradingView
The path of least resistance points downward, putting SHIB in a risky situation due to its inability to break above this threshold. On the other hand, rather than posing a crisis, this downward trajectory might offer an opportunity. Historically, periods of accumulation have frequently followed such steep drops, during which investors have built up their positions by taking advantage of lower prices.
Larger investors, or whales, who recognize the possibility of future gains and are less alarmed by transient volatility are prone to this pattern. We should expect to see a sizable amount of accumulation from these larger investors as SHIB gets closer to the $0.00001 level.
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Furthermore, the mood of the market at the moment implies that smaller investors — who are sometimes described as having shaky hands — may be liquidating their holdings out of concern for additional losses. Although there may be a brief price drop as a result of this selling pressure, long-term investors may find themselves with a fantastic opportunity to purchase.
More seasoned whales enter the market as these less experienced players leave, consuming the supply and potentially restoring prices. It is critical to remember that despite the seemingly dire short-term outlook for SHIB, the underlying fundamentals and the overall state of the market remain very important.