Recently, the price of Shiba Inu coin ($SHIB) has dropped significantly, with a daily decline of over 10% and a cumulative drop of 22% over the past week. This decline occurred as some large holders (whales) took profits, with one whale even conducting a massive sell-off of SHIB within a few days. Nevertheless, technical data suggests that SHIB may rebound at the current price level, with limited room for further decline. $0.0000234 could be a strong support level.
Whale sell-off drives price adjustment
On-chain data shows that whale sell-off activities are the main reason for the recent price correction. According to Lookonchain's analysis, one whale sold over $6 million worth of 250 billion SHIB in the past week. Notably, this whale purchased approximately 1.528 trillion SHIB for only $3,800 in August 2020, meaning that even at the current price, this whale's investment returns remain significant.
In addition, the same whale also continued to reduce holdings through the Gemini platform, further intensifying selling pressure in the market. Although these large trades triggered market volatility, the whale still retains about 20 trillion SHIB, valued at approximately $48 million, with anticipated profits nearing $108 million.
Market sentiment and concerns over declining burn rate
The SHIB community has recently expressed concerns about the declining token burn rate. According to Shibburn data, SHIB's burn rate has decreased by 70%, which may affect the long-term supply contraction effect. However, despite facing challenges, the SHIB community remains optimistic about the future, especially with the launch of new tokens like SHIFU and TREAT, keeping the market's positive sentiment towards SHIB alive.
Technical perspective: support levels and rebound opportunities
From a technical perspective, SHIB's price is currently fluctuating between $0.000023 and $0.000026, finding support around $0.0000241, close to the 0.5 Fibonacci retracement level. Increased buying volume across multiple trading platforms indicates that the current price level has attracted significant investor interest.
Analysts point out that $0.0000234 is a key support level. If SHIB can stabilize around this price, it may experience a rebound in the coming weeks, with a target price potentially reaching $0.0000998. Breaking through $0.000037 will be the next key resistance level.
Potential buying opportunity
As market sentiment gradually stabilizes, the technical indicators for Shiba Inu coin are also showing signs of improvement. Although there may still be some volatility in the short term, the current price level offers an attractive buying opportunity for long-term investors preparing for the 2024 bull market. Investors should closely monitor market trends, especially major market events that may occur in mid-January, such as the U.S. presidential inauguration.