In the current market cycle, SHIB whales have chosen to act cautiously and reduce market activities. However, as long as this pressure situation can be effectively dealt with, the market is still expected to find a balance.
SHIB has been under severe bearish pressure recently. Although SHIB rose 8% to a high of $0.00001739 at the beginning of this week after a seven-day correction, most of the gains were quickly dissipated and the current trading price has corrected to $0.00001701.
AMBCrypto's latest report reveals the changes in the market, pointing out that old cryptocurrencies are gradually being replaced by emerging meme coins. If this trend continues, SHIB may find it difficult to achieve a 100-fold increase, let alone surpass Bitcoin's brilliant achievements next year.
SHIB whales are particularly cautious. These whales, who hold 0.1% of SHIB’s circulating supply and account for about 60% of the large holders, hold an astonishing 590 trillion SHIB tokens. However, in the past 24 hours, their activities have decreased significantly, with large transaction volume plummeting by 35.41%, and only 1.99 trillion SHIB has been circulated.
It is worth noting that while high accumulation is often seen as a signal of a market bottom, suggesting a good opportunity to buy on the dip, a decrease in whale activity may indicate a market top, reflecting their lack of confidence in SHIB's short-term prospects. This is evidenced by the fact that large queues sent 90 billion SHIB to exchanges in the past two days, causing a 6% price drop.
Although the whales’ cautious attitude has had an impact on the market, the broader trend has not yet clearly pointed to an impending pullback. Because the bulls are quietly recovering and regaining control of the market. On the daily chart, the bearish MACD crossover coincides with the price decline, but the total net flow has turned negative after the large Shiba Inu whale cut its position, which shows that the bulls are stepping in the market to absorb the pressure by allocating capital to SHIB.
This is undoubtedly a critical moment for the market to recover. The recent activity of SHIB whales has caused its value to fall, leaving many investors in a predicament of net losses. However, if bulls can continue to provide support, this may restore the confidence of investors who are in losing positions and incentivize holders to support SHIB's price adjustment. This is an important step in the market's upcoming reversal and a critical moment for investors to regain hope.
From a fundamental economic perspective, an increase in supply, if accompanied by strong demand, is expected to achieve price equilibrium. The recent net outflow of SHIB reveals bullish sentiment, indicating great potential for aggressive buying. The RSI indicator also further supports this view and is currently in a neutral phase.
However, the key factor that will determine the direction of the market lies in the continued uptrend. This largely depends on the response strategy of holders after the SHIB whale sells. If the bulls can successfully respond to the selling pressure by actively buying, the market reversal may bring SHIB closer to its previous resistance level of $0.000020, which is the key to a potential breakout.
On the contrary, considering the volatility of the overall market and the increasing trend of SHIB's capital allocation to the newly established memecoin, consolidation in the range of $0.0000175 to $0.0000160 seems more likely. Investors need to pay close attention to market dynamics to seize future investment opportunities.
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